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 Stocks Poised for Breakouts With that in mind, let's take a look at several stocks rising on unusual volume today. Altra Industrial Motion Altra Industrial Motion (AIMC) is a designer, producer and marketer of mechanical power transmissions and motion control products serving customers in a group of industries, including energy, material handling, mining, transportation and turf and garden. This stock closed up 2.1% at $31.81 in Monday's trading session. Monday's Volume: 339,000
Three-Month Average Volume: 127,153
Volume % Change: 127% From a technical perspective, AIMC trended modestly higher here with above-average volume. This move is quickly pushing shares of AIMC within range of triggering a near-term breakout trade. That trade will hit if AIMC manages to take out Monday's high of $31.97 to its 52-week high of $32.76 with high volume. Traders should now look for long-biased trades in AIMC as long as it's trending above $30.50 or above $30 and then once it sustains a move or close above those breakout levels with volume that's near or above 127,153 shares. If that breakout hits soon, then AIMC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $36 to $38. ITT ITT (ITT) is a manufacturer of highly engineered critical components and customized solutions for growing industrial end-markets such as energy infrastructure, electronics, aerospace and transportation. This stock closed up 2.8% at $41.32 in Monday's trading session.
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