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. Goodrich Petroleum Goodrich Petroleum (GDP) explores, exploits, develops and produces oil and natural gas properties in East Texas and Northwest Louisiana. This stock closed up 4.2% at $15.15 in Monday's trading session. Monday's Volume: 2.26 million
Three-Month Average Volume: 787,641
Volume % Change: 293% >>4 Oil & Gas Stocks Under $10 to Watch From a technical perspective, GDP spiked sharply higher here with heavy upside volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $11.16 to its intraday high of $15.40. During that move, shares of GDP have been consistently making higher lows and higher highs, which is bullish technical price action. That move is now starting to push shares of GDP within range of triggering a major breakout trade. That trade will hit if GDP manages to take out some near-term overhead resistance levels at $16 to its 52-week high at $16.18 with high volume. Traders should now look for long-biased trades in GDP as long as it's trending above some near-term support levels at $14 or $13.50, and then once it sustains a move or close above those breakout levels with volume that's near or above 787,641 shares. If that breakout hits soon, then GDP will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $24.
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