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. DaVita HealthCare Partners DaVita HealthCare Partners (DVA) operates kidney dialysis centers and provides related lab services mainly in dialysis centers and in contracted hospitals across the U.S. This stock closed up 6.7% at $62.17 in Monday's trading session. Monday's Volume: 5.65 million
Three-Month Average Volume: 1.84 million
Volume % Change: 216% From a technical perspective, DVA exploded higher here back above its 200-day moving average of $59.27 with heavy upside volume. This move also pushed shares of DVA into breakout territory, since the stock took out and closed above some near-term overhead resistance at $62.14. Market players should now look for a continuation move higher in the short-term if DVA can manage to take out Monday's high of $62.78 with high volume. Traders should now look for long-biased trades in DVA as long as it's trending above $61 or $60 and then once it sustains a move or close above Monday's high of $62.78 with volume that hits near or above 1.84 million shares. If we get that move soon, then DVA will set up to re-test or possibly take out its next major overhead resistance levels at $65.50 to its 52-week high at $65.67. Any high-volume move above those levels will then give DVA a chance to tag $70.
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