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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
insider buying or
selling -- or buying or selling by "superinvestors."
>>5 Stocks Poised for Breakouts
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.>>5 Stocks Under $10 Set to Soar HigherBungeBunge(BG - Get Report) is a global agribusiness and food company, operating in the farm-to-consumer food chain. It conducts its operations in three divisions: agribusiness, fertilizer and food and ingredients. This stock is trading up 1.3% at $68.51 in recent trading.
Today's Volume: 1.96 million
Average Volume: 1.15 million
Volume % Change: 276%
From a technical perspective, BG is moving modestly higher here off oversold levels with above-average volume. This stock has been downtrending badly for the last two months, with shares dropping from its high of $76.47 to its intraday low of $66.86. During that move, shares of BG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed shares of BG into oversold territory, since its current relative strength index reading is 28.13. Oversold can always get more oversold, but it's also an area from which a stock can experience a powerful bounce higher.
Traders should now look for long-biased trades in BG as long as it's trending above today's low of $66.86 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 1.15 million shares as bullish. If BG can maintain that strength, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $70 to around $73.