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.
HFF (HF - Get Report) provides commercial real estate and capital market services to users and providers of capital in the commercial real estate industry in the U.S. This stock closed up 2.9% to $33.26 in Monday's trading session.
Monday's Volume: 408,000
Three-Month Average Volume: 183,538
Volume % Change: 130%
From a technical perspective, HF jumped higher here back above its 50-day moving average of $32.66 with above-average volume. This move is quickly pushing shares of HF within range of triggering a near-term breakout trade. That trade will hit if HF manages to take out some near-term overhead resistance levels at Monday's intraday high of $33.78 to $34.03 with high volume.
Traders should now look for long-biased trades in HF as long as it's trending above some near-term support at $32 or at $31 and then once it sustains a move or close above those breakout levels with volume that hits near or above 183,538 shares. If that breakout triggers soon, then HF will set up to re-test or possibly take out its next major overhead resistance levels at $35.13 to its 52-week high at $36.06.