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 Rocket Stocks to Buy This Week With that in mind, let's take a look at several stocks rising on unusual volume today. Crocs Crocs (CROX) is engaged in the design, development, manufacturing, marketing and distribution of consumer products, mainly casual and athletic shoes and shoe charms, from specialty resins referred to as Croslite. This stock closed up 9.7% to $13.89 in Wednesday's trading session. Wednesday's Volume: 12.85 million
Three-Month Average Volume: 1.31 million
Volume % Change: 857% >>5 Stocks Set to Soar on Bullish Earnings From a technical perspective, CROX exploded higher here back above its 50-day moving average of $13.34 with monster upside volume. This move briefly pushed shares of CROX into breakout territory, since the stock flirted with some near-term overhead resistance levels at $13.94 to $14.45. Shares of CROX closed just below those breakout levels at $13.89. Market players should now look for a continuation move higher in the short-term if CROX can manage to take out Wednesday's intraday high of $14.53 and its 200-day moving average at $14.99 with high volume. Traders should now look for long-biased trades in CROX as long as it's trending above its 50-day at $13.34 or above Wednesday's low of $12.60 and then once it sustains a move or close above $14.53 to $14.99 with volume that hits near or above 1.31 million shares. If we get that move soon, then CROX will set up to re-fill some of its previous gap down zone from July that started near $17.50.
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 + 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