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: 115,970
Volume % Change: 65% From a technical perspective, SHEN spiked higher here with above-average volume. This stock just formed a double bottom chart pattern, since buyers stepped in to support the stock over the last month at $22.17 and at $22.19. Shares of SHEN have now started to spike higher off $22.19 and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if SHEN manages to take out some near-term overhead resistance levels at its 50-day moving average of $25.19 to more near-term overhead resistance at $25.44 with high volume. Traders should now look for long-biased trades in SHEN as long as it's trending above Friday's low of $23.23 or above more support at $22.19 and then once it sustains a move or close above those breakout levels with volume that's near or above 115,970 shares. If that breakout hits soon, then SHEN will set up to re-test or possibly take out its next major overhead resistance levels at $27.02 to its 52-week high at $29.15.