4 Stocks Spiking on Big 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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Celldex Therapeutics

Celldex Therapeutics ( CLDX) is a biopharmaceutical company focused on the development and commercialization of several immunotherapy technologies for the treatment of cancer and other difficult-to-treat diseases. This stock is trading up 5.4% at $13.48 in recent trading.

Today's Volume: 2.03 million
Average Volume: 1.62 million
Volume % Change: 196%

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From a technical perspective, CLDX is trending higher here right above its 50-day moving average at $12.27 with above-average volume. This stock has started to enter breakout territory, since it's trading above some near-term overhead resistance at $13.48. That move is quickly pushing shares of CLDX within range of triggering an even bigger breakout trade. That trade will hit if CLDX manages to take out its 52-week high at $14.09 with high volume.

Traders should now look for long-biased trades in CLDX as long as it's trending above $13 or above $13.48 and then once it sustains a move or close above $14.09 with volume that hits near or above 1.62 million shares. If that breakout triggers soon, then CLDX will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets if that breakout hits are $17 to $20.

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