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 Toxic Stocks to Sell Now With that in mind, let's take a look at several stocks rising on unusual volume today. Alliance Fiber Optic Products Alliance Fiber Optic Products ( AFOP) designs, manufactures and markets a range of fiber optic components, and integrated modules incorporating these components, for communications equipment manufacturers and service providers. This stock closed up 10.7% to $32.21 in Wednesday's trading session. Wednesday's Volume: 776,000
Three-Month Average Volume: 201,450
Volume % Change: 208% >>2 Tech Stocks Gearing Up to Break Out From a technical perspective, AFOP skyrocketed higher here right above some near-term support at $28.83 with above-average volume. This stock has been uptrending strong for the last five months, with shares soaring higher from its low of $10.84 to its recent high of $34.77. During that move, shares of AFOP have been consistently making higher lows and higher highs, which is bullish technical price action. That bullish trend has now pushed shares of AFOP within range of triggering a near-term breakout trade. That trade will hit if AFOP manages to take out some near-term overhead resistance levels at $34 to its 52-week high at $34.77 with high volume. Traders should now look for long-biased trades in AFOP as long as it's trending above some key near-term support levels at $28.83 to $28.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 201,450 shares. If that breakout hits soon, then AFOP will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45.
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