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.
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Friday's Volume: 613,000
Three-Month Average Volume: 239,925
Volume % Change: 123%
From a technical perspective, PKX jumped modestly higher here with above-average volume. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $63.71 to its intraday high of $75.69. During that uptrend, shares of PKX have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term of PKX manages to take out Friday's intraday high of $75.69 with strong volume.
Traders should now look for long-biased trades in PKX as long as it's trending above Friday's low of $73.83 or above its 200-day at $72.44 and then once it sustains a move or close above Friday's high of $75.69 with volume that this near or above 239,925 shares. If that move starts soon, then PKX will set up to re-test or possibly take out its next major overhead resistance levels at $79 to its 52-week high at $80.46.