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.>>5 Stocks Warren Buffett Loves Major moves in volume can signal unusual activity, such as insider buying or selling -- 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. >>5 Toxic Stocks to Dump Before 2013 With that in mind, let's take a look at several stocks rising on unusual volume today. Gildan Activewear ( GIL) This is a marketer and vertically-integrated globally manufacturer of basic, non-fashion apparel products for customers requiring an efficient supply chain and consistent product quality for high-volume replenishment programs. This stock is trading up 2.4% at $34.98 in recent trading. Today's Volume: 438,000 Average Volume: 332,223 Volume % Change: 96% From a technical perspective, GIL is trending higher here right above its 50-day moving average of $33.11 with above-average volume. This move has started to push GIL into breakout territory, since the stock has challenged some near-term overhead resistance levels at $34.27 to $35.11. At last check, GIL has hit an intraday high of $35.21 and volume is well above its three-month average action of 332,223 shares. Traders should now look for long-biased trades in GIL as long as it's trending above those breakout levels with strong upside volume flows. I would consider any upside volume day that registers near or above 332,223 shares as bullish. If GIL can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $36.85 to $37.43. HomeStreet ( HMST)
Twitter and become a fan on Facebook. 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 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 CNBC.com and Forbes.com . You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.