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. Natural Grocers by Vitamin Cottage Natural Grocers by Vitamin Cottage ( NGVC) is a specialty retailer of natural and organic groceries and dietary supplements. This stock closed up 3.9% to $38.24 in Monday's trading session. Monday's Volume: 196,000
Three-Month Average Volume: 116,850
Volume % Change: 70% From a technical perspective, NGVC spiked higher here back above its 50-day moving average of $37.84 with above-average volume. This move is starting to push shares of NGVC within range of triggering a near-term breakout trade. That trade will hit if NGVC manages to take out some near-term overhead resistance levels at $38.75 to $40.79 with high volume. Traders should now look for long-biased trades in NGVC as long as it's trending above Monday's low of $37.31 or above more near-term support at $36 and then once it sustains a move or close above those breakout levels with volume that hits near or above 116,850 shares. If that breakout hits soon, then NGVC will set up to re-test or possibly take out its all-time high at $42.86. Any high-volume move above $42.86 will then give NGVC a chance to tag $50. eBay eBay ( EBAY) is a global commerce platform and payments provider. This stock closed up 1.6% at $51.35 in Monday's trading session.
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