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 Under $10 Set to Soar With that in mind, let's take a look at several stocks rising on unusual volume recently. GameStop GameStop (GME) operates as a video game retailer. This stock closed up 8.8% to $40.62 in Friday's trading session. Friday's Volume: 7.30 million
Three-Month Average Volume: 4.53 million
Volume % Change: 175% From a technical perspective, GME ripped sharply higher here right off its 50-day moving average of $36.90 with heavy upside volume. This move pushed shares of GME into breakout territory, after the stock took out some near-term overhead resistance at $39.95. Market players should now look for a continuation move higher in the short-term if GME manages to take out Friday's high of $40.65 with strong volume. Traders should now look for long-biased trades in GME as long as it's trending above $39 or $38 and then once it sustains a move or close above Friday's high of $40.65 with volume that hits near or above 4.53 million shares. If we get that move soon, the GME will set up to re-fill more of its previous gap-down-day zone from January that started at $45.45.
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