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 Poised to Break Out With that in mind, let's take a look at several stocks rising on unusual volume today. Arcos Dorados Arcos Dorados ( ARCO) operates and franchises McDonald's restaurants in Latin America. This stock closed up 5.1% to $12.48 in Monday's trading session. Monday's Volume: 1.82 million
Three-Month Average Volume: 1.07 million
Volume % Change: 80% >>5 Rocket Stocks to Buy in November From a technical perspective, ARCO ripped higher here right above its 50-day moving average of $11.71 with above-average volume. This move is quickly pushing shares of ARCO within range of triggering a near-term breakout trade. That trade will hit if ARCO manage to take out Monday's high of $12.53 and some more near-term overhead resistance at $12.67 with high volume. Traders should now look for long-biased trades in ARCO as long as it's trending above its 200-day at $11.71 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.07 million shares. If that breakout hits soon, then ARCO will set up to re-test or possibly take out its next major overhead resistance levels at $13.64 to $14.20, or even $15. Masonite International Masonite International ( DOOR) is a designer and manufacturer of interior and exterior doors. This stock closed up 2.6% to $49.90 in Monday's trading session.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts