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.
Three-Month Average Volume: 859,077
Volume % Change: 90% From a technical perspective, FENG ripped higher here right above some near-term support at $11 with above-average volume. This move pushed shares of FENG into breakout territory, after the stock took out some near-term overhead resistance at $11.65. Traders should now look for a continuation move higher in the short-term if FENG manages to take out Monday's high of $11.70 with high volume. Traders should now look for long-biased trades in FENG as long as it's trending above support at $11 or above $10.50 and then once it sustains a move or close above $11.70 with volume that hits near or above 859,077 shares. If that moves come to fruition soon, then FENG will set up to re-test or possibly take out its 52-week high at $13.38. Control4 (CTRL - Get Report) provides automation and control solutions for the connected home. This stock closed up 6.6% to $20.71 in Monday's trading session. Monday's Volume: 758,000
Three-Month Average Volume: 279,438
Volume % Change: 120%