4 Stocks Rising on Unusual Volume

MADISON, 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 insider buying or selling -- or buying or selling by "superinvestors."

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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.

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Matrix Service

Matrix Service ( MTRX) provides construction and repair and maintenance services mainly to the energy and energy related industries. This stock is trading up 4% at $16.15 in recent trading.

Today's Volume: 458,000
Average Volume: 154,626
Volume % Change: 484%

Shares of MTRX are trending up today after the company said it beat Wall Street EPS estimates by 2 cents per share and beat revenue estimates.

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From a technical perspective, MTRX is ripping higher here back above its 50-day moving average of $15.13 with heavy upside volume. This move has started to push shares of MTRX into breakout territory, since the stock has taken out some near-term overhead resistance levels at $15.59 to $15.79.

Traders should now look for long-biased trades in MTRX as long as it's trending above those key breakout levels with bullish upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 154,626 shares as bullish. If MTRX can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $16.74 to $17.21. Any high-volume move above $17.21 will then push shares of MTRX into new 52-week high territory, which is bullish technical price action.

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