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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(IMMR - Get Report)
develops, manufactures, licenses and supports a range of hardware and software technologies and products that enhance digital devices with touch interaction. This stock closed up 4.9% at $11.49 on Monday.
Monday's Volume: 566,000
Average Volume: 205,228
Volume % Change: 169%
From a technical perspective, IMMR trended higher here right above some near-term support around $10.50 with above-average volume. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $5.90 to its recent high of $11.95. During that move, shares of IMMR have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of IMMR within range of triggering a near-term breakout trade. That trade will hit if IMMR manages to clear some near-term overhead resistance at $11.95 with high volume.
Traders should now look for long-biased trades in IMMR as long as it's trending above Monday's low of $10.76 or above $10.50, and then once it sustains a move or close above $11.95 with volume that hits near or above 205,228. If that breakout hits soon, then IMMR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $14 to $16.