4 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.

United Rentals

United Rentals ( URI) is an equipment rental company and its network consists of 529 rental locations in the U.S., Canada and Mexico. This stock closed up 4.2% at $59.79 in Wednesday's trading session.

Wednesday's Volume: 6.21 million
Three-Month Average Volume: 1.64 million
Volume % Change: 232%

From a technical perspective, URI spiked higher here right off its 50-day moving average of $56.72 with above-average volume. This stock has been uptrending modestly over the last two months, with shares moving higher from its low of $52.39 to its intraday high of $61.43. During that uptrend, shares of URI have been making mostly higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in URI as long as it's trending above its 50-day at $56.72 and then once it sustains a move or close above its new 52-week high at $61.43 with volume that's near or above 1.64 million shares. If we get that move soon, then URI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $65 to $70.


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