MADISON, Wis. ( 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.
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 Poised for Breakouts B&G Foods B&G Foods ( BGS) manufactures sells and distributes shelf-stable food and household products. This stock is trading up 6.8% at $31.17 in recent trading. Today's Volume: 455,000
Average Volume: 311,394
Volume % Change: 128% Shares of BGS are ripping higher today after the company said it has agreed to buy Robert's American Gourmet Food, which owns the Pirate's Booty brand, for $195 million in cash. >>3 Big Stocks on Traders' Radars From a technical perspective, BGS is trending higher here right off its 200-day moving average at $29.56 and back above its 50-day moving average at $29.88 with above-average volume. This move is quickly pushing shares of BGS within range of triggering a near-term breakout trade. That trade will hit if BGS manages to clear some near-term overhead resistance levels at $31.50 to $31.69 with high volume. Traders should now look for long-biased trades in BGS as long as it's trending above some resistance at $30.47 or above its 50-day at $29.88, and then once it sustains a move or close above those breakout levels with volume that hits near or above 311,394 shares. If that breakout triggers soon, then BGS will set up to re-test or possibly take out its next major overhead resistance levels at $32.82 to its 52-week high at $33.14.