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.>>Apple Doesn't Suck -- but Its Stock Does 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. With that in mind, let's take a look at several stocks rising on unusual volume today. >>5 Stock Charts You Need to See CIT Group ( CIT) This company provides commercial financing and leasing products and other services to small and middle market businesses across a wide variety of industries. This stock is trading up 2% at $42.88 in recent trading. Today's Volume: 3.98 million Average Volume: 1.36 million Volume % Change: 282% Shares of CIT are trending higher today after news broke that the company has explored a possible sale of itself over the past year-and-a-half to a number of banks. From a technical perspective, CIT is moving higher here right above some near-term support at $41.62 with above-average volume. This stock has been uptrending strong for the last three months, with shares soaring from its low of $36.02 to its recent high of $43.90. During that move shares of CIT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CIT within range of triggering a near-term breakout trade. That trade will hit if CIT manages to take out some near-term overhead resistance at $43.90 and some past resistance at $44.88 with high volume. Traders should now look for long-biased trades in CIT as long as it's trending above its $41.62, and then once it sustains a move or close above $43.90 to $44.88 with volume that hits near or above 1.36 million shares. If that breakout triggers soon, then CIT will set up to re-test or possibly take out its next major overhead resistance levels at $48 to $49.57.
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.