5 Stocks Spiking on Big 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.

Novadaq Technologies

Novadaq Technologies ( NVDQ) develops, manufactures and markets real-time fluorescence imaging technology products that are designed for use by surgeons in the operating room and other clinical settings. This stock closed up 2.2% at $15.33 in Wednesday's trading session.

Wednesday's Volume: 490,000
Three-Month Average Volume: 196,967
Volume % Change: 195%

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From a technical perspective, NVDQ trended modestly higher here right off some near-term support at $15 with above-average volume. This move is quickly pushing shares of NVDQ within range of triggering a major breakout trade. That trade will hit if NVDQ manages to take out some near-term overhead resistance at $15.66 and then once it clears its all-time high at $15.85 with high volume.

Traders should now look for long-biased trades in NVDQ as long as it's trending above support at $15 or above its 50-day at $14.20 and then once it sustains a move or close above those breakout levels with volume that's near or above 196,967 shares. If that breakout hits soon, then NVDQ will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23.

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