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.
Must Read: 3 Stocks Rising on Big Volume
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Wednesday's Volume: 8.63 million
Three-Month Average Volume: 1.90 million
Volume % Change: 431%
From a technical perspective, ARRS gapped up large here back above its 50-day moving average of $27.58 and above some near-term overhead resistance at $27.10 with heavy upside volume. This move briefly pushed shares of ARRS into breakout territory, since the stock flirted with some more near-term overhead resistance at $28.89. Shares of ARRS tagged an intraday high of $30.37, before it closed off that level at $28.60. Market players should now look for a continuation move higher in the short-term if ARRS manages to take out Wednesday's intraday high of $30.37 to more near-term overhead resistance at $30.64 with high volume.
Traders should now look for long-biased trades in ARRS as long as it's trending above Wednesday's low of $28.16 and then once it sustains a move or close above $30.37 to $30.64 with volume that hits near or above 1.90 million shares. If that move gets underway soon, then ARRS will set up to re-test or possibly take out its 52-week high at $31.42.