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 Ready to Break Out With that in mind, let's take a look at several stocks rising on unusual volume today. Cloud Peak Energy Cloud Peak Energy ( CLD) is a producer of coal in the U.S. and in the Powder River Basin. This stock closed up 4.3% at $15.98 in Monday's trading session. Monday's Volume: 1.18 million
Three-Month Average Volume: 724,852
Volume % Change: 155% >>5 Rocket Stocks to Buy This Week From a technical perspective, CLD spiked sharply higher here right off its 50-day moving average of $15.30 with above-average volume. This move pushed shares of CLD into breakout territory, since the stock took out some near-term overhead resistance levels at $15.46 to $15.63. This move also pushed shares of CLD out of its recent downtrend, since the stock closed above a key downtrend line that dated back to July. Traders should now look for long-biased trades in CLD as long as it's trending above Monday's low of $15.18 or above $15, and then once it sustains a move or close above Monday's high of $16.07 with volume that this near or above 724,852 shares. If we get that move soon, then CLD will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $17.14 to $17.50. Any high-volume move above those levels will then give CLD a chance to tag $19 to $20.
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