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.>>5 Stocks Under $10 Set to Soar
Three-Month Average Volume: 376,761
Volume % Change: 260% From a technical perspective, DMND soared higher here right off its 50-day moving average of $23.39 with strong upside volume. This move pushed shares of DMND into breakout and new 52-week-high territory, since the stock took out some near-term overhead resistance levels at $25.07 to $25.32. Market players should now look for a continuation move higher in the short-term if DMND manages to clear its new 52-week high at $26.23 with high volume. Traders should now look for long-biased trades in DMND as long as it's trending above its 50-day at $23.39 and then once it sustains a move or close above $26.23 with volume that hits near or above 376,761 shares. If we get that move soon, then DMND will set up to re-test or possibly take out its next major overhead resistance level at $28.29. Any high-volume move above that level will then give DMND a chance to re-fill some of its previous gap down zone from February of 2012 that started near $35.