WINDERMERE, Fla. (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.
Major moves in volume can signal unusual activity, such as
-- or buying or selling by "superinvestors."
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
is a provider of automated retail solutions. This stock is trading up 7.6% at $46.53 in recent trading.
Today's Volume: 5.1 million
Average Volume: 1.4 million
Volume % Change: 608%
From a technical perspective, CSTR is ripping higher here with monster volume. This move is quickly pushing CSTR within range of triggering a near-term breakout trade. That trade will hit once CSTR manages to take out some near-term overhead resistance levels at $47.51 to $47.99 with high volume.
Traders should now look for long-biased trades in CSTR once it sustains a move or close above those breakout levels with volume that hits near or above 1.4 million shares. If that breakout triggers soon, then look for CSTR to re-test or possibly take out its next major overhead resistance levels at $52.50 to $53.75.
provides various financial services to small and middle market businesses as well as individuals in the U.S. This stock is trading up 3% at $20.31 in recent trading.
Today's Volume: 428,000
Average Volume: 202,582
Volume % Change: 229%
From a technical perspective, MBFI is moving notably higher here back above its 50-day at $20.04 and its 200-day at $20.20 with above-average volume. This move is quickly pushing MBFI within range of triggering a near-term breakout trade. That trade will hit once MBFI manages to take out some near-term overhead resistance at $21 to $21.27 with high volume.
Traders should now look for long-biased trades in MBFI as long as its trending above its 200-day, and then once it sustains a move or close above those breakout levels with volume that hits near or above 202,582 shares. If that breakout triggers soon, then look for MBFI to re-test or possibly take out its next major overhead resistance level at $22.44 to $25.
is a global gaming company, which designs, manufactures, operates, and distributes advanced technology-based gaming devices, systems, server-based solutions, custom mobile applications and interactive applications. This stock is trading up 5.1% at $49.68 in recent trading.
Today's Volume: 1.1 million
Average Volume: 714,969
Volume % Change: 192%
From a technical perspective, BYI is bouncing higher here right off some near-term support at $47 with above-average volume. This move has also pushed BYI into breakout territory, since the stock has started to challenge some near-term overhead resistance at $49.69. At last check, BYI has hit an intraday high of $51.16 and volume is well above its three-month average action of 714,969 shares.
Traders should now look for long-biased trades in BYI as long as it's trending above $48.43 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 714,969 shares as bullish. If BYI can maintain that trend, then this stock could be setting up to tag $55 to $60 in the near future.
To see more stocks rising on unusual volume, check out the
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.