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 Worth Buying This Week With that in mind, let's take a look at several stocks rising on unusual volume today. Mentor Graphics Mentor Graphics ( MENT) supplies electronic design automation systems. This stock closed up 5.2% at $23.64 in Monday's trading session. Monday's Volume: 1.78 million
Three-Month Average Volume: 554,255
Volume % Change: 224% From a technical perspective, MENT ripped sharply higher here right above its 50-day moving average of $22.27 with strong upside volume. This move pushed shares of MENT into breakout territory, since the stock took out some near-term overhead resistance levels at $22.82 to $22.92. Shares of MENT also flirted with a new 52-week high on Monday, after the stock challenged its previous 52-week high at $23.72. Market players should now look for a continuation move higher for MENT in the short-term if this stock manages to take out its new 52-week high at $23.88 with high volume. Traders should now look for long-biased trades in MENT as long as it's trending above $23 or above Monday's low of $22.48, and then once it sustains a move or close above $23.88 with volume that's near or above 554,255 shares. If we get that move soon, then MENT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $26 to $30.