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.

Tableau Software

Tableau Software ( DATA) provides software products to help people see and understand data. This stock closed up 1.7% to $65.13 in Wednesday's trading session.

Wednesday's Volume: 1.95 million
Three-Month Average Volume: 408,032
Volume % Change: 476%

From a technical perspective, DATA rose modestly higher here with heavy upside volume. This stock recently formed a double bottom chart pattern at $59.50 to $58.96. Following that bottom, shares of DATA have spiked sharply higher and it's now moving within range of triggering a near-term breakout trade. That trade will hit if DATA manages to take out its 50-day moving average at $68.76 to more near-term overhead resistance at $70 with high volume.

Traders should now look for long-biased trades in DATA as long as it's trending above Wednesday's low of $63.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 408,032 shares. If we get that move soon, then DATA will set up to re-test or possibly take out its next major overhead resistance levels at $73.45 to its all-time high at $77.74.

Pinnacle Entertainment

Pinnacle Entertainment ( PNK) is an owner, operator and developer of casinos and related hospitality and entertainment facilities. This stock closed up 7% at $24.33 in Wednesday's trading session.

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