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 in December With that in mind, let's take a look at several stocks rising on unusual volume today. Ternium SA Ternium SA ( TX) is engaged in manufacturing and processing of flat and long steel products for construction, home appliances, capital goods, container, food, energy and automotive industries. This stock closed up 3.5% to $27.66 in Monday's trading session. Monday's Volume: 732,000
Three-Month Average Volume: 197,888
Volume % Change: 261% From a technical perspective, TX spiked higher here right off its 50-day moving average of $26.38 with above-average volume. This stock has been uptrending for the last six months, with shares moving higher from its low of $20.02 to its recent high of $28.40. During that uptrend, shares of TX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TX within range of triggering a near-term breakout trade. That trade will hit if TX manages to take out its 52-week high at $28.40 with high volume. Traders should now look for long-biased trades in TX as long as it's trending above its 50-day at $26.38 or above more near-term support at $25.74 and then once it sustains a move or close above $28.40 with volume that hits near or above 197,888 shares. If that breakout hits soon, then TX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $34 to $36.
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 Plus 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