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.
Vocera Communications (VCRA - Get Report), mobile technology company, provides mobile communication solutions in healthcare, hospitality, energy, retail and other mobile work environments in the U.S. and internationally. This stock closed up 4.1% at $15.25 in Wednesday's trading session.
Wednesday's Volume: 1.02 million
Three-Month Average Volume: 173,066
Volume % Change: 453%
From a technical perspective, VCRA ripped sharply higher right above some near-term support at $14.18 with monster upside volume. This stock recently formed a double bottom chart pattern at $14.08 to $14.18. Following that bottom, shares of VCRA have started to rip higher and move within range of triggering a near-term breakout trade. That trade will hit if VCRA manages to take out some near-term overhead resistance levels at $15.83 and then once it clears its 50-day moving average at $16.06 to its 200-day moving average at $16.72 with high volume.
Traders should now look for long-biased trades in VCRA as long as it's trending above those double bottom support zones and then once it sustains a move or close above those breakout levels with volume that hits near or above 173,066 shares. If that breakout triggers soon, then VCRA will set up to re-test or possibly take out its next major overhead resistance levels at $17.95 to $18.26, or its $19.33.