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.
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 engaged in manufacturing and processing of flat and long steel products for construction, home appliances, capital goods, container, food, energy and automotive industries. This stock closed up 3.5% to $27.66 in Monday's trading session.
Monday's Volume: 732,000
Three-Month Average Volume: 197,888
Volume % Change: 261%
From a technical perspective, TX spiked higher here right off its 50-day moving average of $26.38 with above-average volume. This stock has been uptrending for the last six months, with shares moving higher from its low of $20.02 to its recent high of $28.40. During that uptrend, shares of TX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TX within range of triggering a near-term breakout trade. That trade will hit if TX manages to take out its 52-week high at $28.40 with high volume.
Traders should now look for long-biased trades in TX as long as it's trending above its 50-day at $26.38 or above more near-term support at $25.74 and then once it sustains a move or close above $28.40 with volume that hits near or above 197,888 shares. If that breakout hits soon, then TX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $34 to $36.
) provides a suite of connectivity solutions and other services. This stock closed up 17.4% at $31.31 in Monday's trading session.
Monday's Volume: 4.68 million
Three-Month Average Volume: 1.48 million
Volume % Change: 204%
From a technical perspective, GOGO exploded higher here with strong upside volume. This move briefly pushed shares of GOGO into new all-time high territory, since this stock flirted with some near-term overhead resistance at $31.55. Shares of GOGO closed just below its intraday high of $31.65 at $31.31. Market players should now look for a continuation move higher in the short-term if GOGO can manage to take out its new all-time high of $31.65 with strong volume.
Traders should now look for long-biased trades in GOGO as long as it's trending above $30 or above $29 and then once it sustains a move or close above its new all-time high of $31.65 with volume that hits near or above 1.48 million shares. If we get that move soon, then GOGO will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $40.
E-House China Holdings
E-House China Holdings
) is engaged in providing real estate agency and brokerage services in the primary and secondary markets and real estate consulting and information services in the People's Republic of China. This stock closed up 6.2% at $11.35 in Monday's trading session.
Monday's Volume: 5.59 million
Three-Month Average Volume: 2.14 million
Volume % Change: 209%
From a technical perspective, EJ spiked sharply higher here and broke out above some near-term overhead resistance at $10.70 with strong upside volume. This stock closed strong and well above that breakout level at $11.35. Market players should now look for a continuation move higher in the short-term if EJ manages to take out Monday's intraday high of $11.41 with strong upside volume.
Traders should now look for long-biased trades in EJ as long as it's trending above Monday's low $10.65 and then once it sustains a move or close above Monday's high of $11.41 with volume that this near or above 2.14 million shares. If we get that move soon, then EJ will set up to re-test or possibly take out its 52-week high at $12.61. Any high-volume move above $12.61 will then give EJ a chance to tag $14 to $15.
To see more stocks rising on unusual volume, check out the
portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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At the time of publication, author had no positions in stocks mentioned. Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.