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 Toxic Stocks to Sell Before It's Too Late With that in mind, let's take a look at several stocks rising on unusual volume today. Onconova Therapeutics Onconova Therapeutics ( ONTX) is engaged in the discovery and development of small molecule product candidates for the treatment of cancer. This stock closed up 16.9% at $15.21 in Wednesday's trading session. Wednesday's Volume: 694,000
Three-Month Average Volume: 191,298
Volume % Change: 201% >>5 Stocks Set to Soar on Bullish Earnings From a technical perspective, ONTX exploded higher here with strong upside volume. This move for ONTX is coming off oversold territory, since the stock recent saw its relative strength index reading dip below 30 when it hit $11.73 a share. Market players should now look for a continued bounce higher off oversold levels, since this stock has dropped sharply during the last two months from $31.13 to that $11.73 low. Traders should now look for long-biased trades in ONTX as long as it's trending above $14 or above Wednesday's low of $13.15, and then once it sustains a move or close above Wednesday's high of $15.40 with volume that's near or above 191,298 shares. If we get that move soon, then ONTX will set up to re-test or possibly take out its next major overhead resistance levels at $16.91 to $18.66. Any high-volume move above those levels will then give ONTX a chance to tag its 50-day moving average of $20.53.