3 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.

Dealertrack Technologies

Dealertrack Technologies ( TRAK) operates as an online credit application network in U.S. and Canada. This stock closed up 11.3% at $41.52 in Wednesday's trading session.

Wednesday's Volume: 962,000
Three-Month Average Volume: 185,932
Volume % Change: 417%

From a technical perspective, TRAK exploded higher here and gapped back above its 50-day moving average of $40.17 with monster upside volume. This move briefly pushed shares of TRAK into breakout territory, since it flirted with some near-term overhead resistance at $41.82. Shares of TRAK are now trending within range of another big breakout trade. That trade will hit if TRAK manages to take out Wednesday's high of $43.25 to its 52-week high at $43.52 with high volume.

Traders should now look for long-biased trades in TRAK as long as it's trending above Wednesday's low of $40.74 or above its 50-day at $40.17 and then once it sustains a move or close above those breakout levels with volume that hits near or above 185,932 shares. If that breakout hits soon, then TRAK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.

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