WINDERMERE, Fla. ( Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.
Major moves in volume can signal unusual activity, such as
-- or buying or selling by "superinvestors."
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Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.
With that in mind, let's take a look at
several stocks rising on unusual volume today.
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(THRM - Get Report)
designs, develops, manufactures and markets proprietary technology electronic components and systems for sale to car and truck original equipment manufacturers. This stock closed up 3.7% at $16.69 on Wednesday.
Wednesday's Volume: 563,000
Average Volume: 165,733
Volume % Change: 206%
Shares of THRM ripped higher on Wednesday after the company reported in-line EPS, beat on revenues and guided fiscal 2013 revenues above Wall Street consensus.
From a technical perspective, THRM spiked higher here right above some near-term support at $15.50 with above-average volume. This stock has been uptrending strong for the last four mouths, with shares soaring higher from its low of $11.11 to its intraday high of $16.94. During that move, shares of THRM have been consistently making higher lows and higher highs, which is bullish technical price action. This move has now pushed shares of THRM within range of triggering a major breakout trade. That trade will hit once THRM manages to take out some past overhead resistance levels at $17.74 to $18.18 with high volume.
Traders should now look for long-biased trades in THRM as long as it's trending above $16.18 or $15.50 and then once it sustains a move or close above those breakout levels with high volume that hits near or above 165,733 shares. If that breakout triggers soon, then THRM will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23.