4 Stocks Spiking 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.


Deere ( DE) manufactures and distributes agriculture and turf equipment and construction and forestry /////// .equipment worldwide. This stock closed up 2% to $84.52 in Wednesday's trading session.

Wednesday's Volume: 8.69 million
Three-Month Average Volume: 2.95 million
Volume % Change: 173%

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From a technical perspective, DE gapped higher here back above its 200-day moving average of $84.51 with above-average volume. This move briefly pushed shares of DE into breakout territory, since the stock flirted with some near-term overhead resistance levels at $84.75 to $85.16. Shares of DE closed just below those breakout levels at $84.52. Market players should now look for a continuation move higher in the short-term if DE can take out Wednesday's high of $85.49 with strong volume.

Traders should now look for long-biased trades in DE as long as it's trending above Wednesday's low of $84.18 or above its 50-day at $82.87 and then once it sustains a move or close above $85.49 with volume that hits near or above 2.95 million shares. If we get that move soon, then DE will set up to re-test or possibly take out its next major overhead resistance levels at $88 to $89. Any high-volume move above $89 will then give DE a chance to tag its next major overhead resistance level at $92.74.

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