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 Trades to Take for October Gains With that in mind, let's take a look at several stocks rising on unusual volume today. Wolverine World Wide Wolverine World Wide ( WWW) designs, manufactures and markets quality casual footwear and apparel, performance outdoor and athletic footwear and apparel, children's footwear, industrial work boots and apparel, and uniform shoes and boots. This stock closed up 1.7% at $59 in Wednesday's trading session. Wednesday's Volume: 699,000
Three-Month Average Volume: 418,736
Volume % Change: 89% >>5 Short-Squeeze Stocks Ready to Pop in October From a technical perspective, WWW bounced modestly higher here right above its 50-day moving average of $56.95 with above-average volume. This move is quickly pushing shares of WWW within range of triggering a big breakout trade. That trade will hit if WWW manages to take out some near-term overhead resistance levels at $59.63 to its 52-week high at $60.35 with high volume. Traders should now look for long-biased trades in WWW as long as it's trending above its 50-day at $56.95 and then once it sustains a move or close above those breakout levels with volume that's near or above 418,736 shares. If that breakout hits soon, then WWW will set up to enter new 52-week-high territory above $60.35, which is bullish technical price action. Some possible upside targets off that move are $65 to $67.
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