3 Stocks Rising on Unusual Volume

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.

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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.

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With that in mind, let's take a look at several stocks rising on unusual volume today.

Domino's Pizza

Domino's Pizza ( DPZ) is engaged in retail sales of food through Domino's Pizza stores, sales of equipment and supplies to Domino's Pizza stores and receipt of royalties from domestic and international Domino's Pizza franchisees. This stock closed up 2.6% at $61.01 in Wednesday's trading session.

Wednesday's Volume: 2.13 million
Three-Month Average Volume: 932,295
Volume % Change: 167%

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From a technical perspective, DPZ bounced higher here right off its 50-day moving average of $59.80 with above-average volume. This stock recently plunged lower from $64.45 to under its 50-day moving average with heavy downside volume. Shares of DPZ have now started to recover and trend back above its 50-day, which could be signaling the stock is ready to resume its uptrend.

Traders should now look for long-biased trades in DPZ as long as it's trending above its 50-day at $59.80 and then once it sustains a move or close above Wednesday's high of $61.24 with volume that this near or above 932,295 shares. If we see that move soon, then DPZ will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $64.45. Any high-volume move above that level will then give DPZ a chance to tag $70.

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