DELAFIELD, 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.>>5 Stocks Poised for Big Breakouts With that in mind, let's take a look at several stocks rising on unusual volume today. Zoltek Zoltek (ZOLT) is engaged in the development, manufacture and marketing of carbon fibers for different applications. This stock closed up 8.7% to $15.49 in Monday's trading session. Monday's Volume: 605,000
Three-Month Average Volume: 253,763
Volume % Change: 140% >>4 Industrial Goods Stocks Spiking Higher From a technical perspective, ZOLT soared higher here right above its 50-day moving average at $13.23 with above-average volume. This stock also entered breakout territory, since the stock took out some near-term overhead resistance at $14.43. This breakout is significantly, since shares of ZOLT had been trending range bound for four months, with shares moving between $12 on the downside and just over $14 on the upside. Traders should now look for long-biased trades in ZOLT as long as it's trending above $14.43 or $14 and then once it sustains a move or close above Monday's high at $15.50 with volume that hits near or above 253,763 shares. If we get that move soon, then ZOLT will set up to enter new 52-week-high and three-year-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $22. Kulicke and Soffa Industries Kulicke and Soffa Industries (KLIC) designs, manufactures and sells capital equipment and expendable tools used to assemble semiconductor devices. This stock closed up 5.7% at $11.77 in Monday's trading session.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV