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 Set to Soar on Bullish Earnings 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 6.1% at $27.80 in Wednesday's trading session. Wednesday's Volume: 7.61 million
Three-Month Average Volume: 1.62 million
Volume % Change: 465% From a technical perspective, GDP ripped sharply higher here right above some near-term support at $25 with heavy upside volume. This stock recently formed a double bottom chart pattern at $24.22 to $24.51. Following that bottom, shares of GDP have started to rebound sharply and move within range of triggering a big breakout trade. That trade will hit if GDP manages to take out Wednesday's high of $28.18 to its 52-week high at $28.55 with high volume. Traders should now look for long-biased trades in GDP as long as it's trending above Wednesday's low of $25.95 or above those double bottom levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.62 million 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 move are $33 to $35.