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 Insiders Love Right Now With that in mind, let's take a look at several stocks rising on unusual volume today. RPX RPX ( RPXC) provides a subscription-based patent risk management solution that facilitates more efficient exchanges of value between owners and users of patents compared to transactions driven by actual or threatened litigation. This stock closed up 5.4% at $18.29 in Wednesday's trading session. Wednesday's Volume: 1.55 million
Three-Month Average Volume: 385,937
Volume % Change: 343% From a technical perspective, RPXC gapped sharply higher here right off its 50-day moving average of $17.16 with heavy upside volume. This move pushed shares of RPXC into breakout territory, since the stock took out some near-term overhead resistance at $18.12. Shares of RPXC are now starting to trend within range of triggering another big breakout trade. That trade will hit if RPXC manages to take out some key overhead resistance levels at $19.88 to $20.38 with high volume. Traders should now look for long-biased trades in RPXC as long as it's trending above Wednesday's low of $17.89 or its 50-day at $17.16 and then once it sustains a move or close above those breakout levels with volume that hits near or above 385,937 shares. If that breakout hits soon, then RPXC will set up to re-test or possibly take out its next major overhead resistance levels at $24 to $27.