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.
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With that in mind, let's take a look at several stocks rising on unusual volume recently.
AerCap (AER - Get Report), through its subsidiaries, is engaged in leasing, financing, selling, and managing commercial aircraft and engines primarily in the U.S. and Russia. This stock closed up 2.5% to $43.83 in Friday's trading session.
Friday's Volume: 2.07 million
Three-Month Average Volume: 1.03 million
Volume % Change: 119%
From a technical perspective, AER spiked higher here and broke out above some near-term overhead resistance levels at $42.95 to $43.69 with above-average volume. This move pushed shares of AER into new 52-week-high territory, which is bullish technical price action. Market players should now look for a continuation move higher in the short-term if AER manages to take out its new 52-week high at $44.07 with strong volume.
Traders should now look for long-biased trades in AER as long as it's trending above its 50-day at $41.01 and then once it sustains a move or close above $44.07 with volume that hits near or above 1.03 million shares. If that move starts soon, then AER will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that action are $50 to $55.