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 for Breakouts With that in mind, let's take a look at several stocks rising on unusual volume today. Sagent Pharmaceuticals Sagent Pharmaceuticals ( SGNT) is a pharmaceutical company engaged in developing, manufacturing, sourcing and marketing pharmaceutical products, with a specific emphasis on injectables. This stock closed up 4.2% to $23.80 in Monday's trading session. Monday's Volume: 510,000
Three-Month Average Volume: 241,263
Volume % Change: 77% >>5 Breakout Trades Under $10 From a technical perspective, SGNT ripped sharply higher here right off some near-term support at $22.50 with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $19.76 to its intraday high of $24.22. During that uptrend, shares of SGNT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SGNT within range of triggering a big breakout trade. That trade will hit if SGNT manages to take out Monday's high of $24.22 to its 52-week high at $24.27 with high volume. Traders should now look for long-biased trades in SGNT as long as it's trending above support at $22.50 or above its 50-day at $21.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 241,263 shares. If that breakout hits soon, then SGNT will set up to enter 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $27 to $30.
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