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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(ATOS - Get Report)
is a health care company focused on the commercialization of cellular and molecular diagnostic risk assessment products and related services for the detection of pre-cancerous conditions that could lead to breast cancer. This stock closed up 2.7% at $11.35 on Monday.
Monday's Volume: 149,000
Average Volume: 64,387
Volume % Change: 77%
From a technical perspective, ATOS bounced higher here right above some near-term support at $10 with above-average volume. This move is quickly pushing ATOS within range of triggering a major breakout trade. That trade will hit if ATOS manages to take out its all-time high of $12.40 with high volume.
Traders should now look for long-biased trades in ATOS as long as it's trending above Monday's low of $11.39 or above some key near-term support at $10 and then once it sustains a move or close above its all-time high at $12.40 with volume that hits near or above 64,387 shares. If that breakout triggers soon, then ATOS will enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $16.