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.

Envestnet

Envestnet ( ENV) provides integrated wealth management software and services to financial advisors and institutions in the U.S. This stock closed up 2.3% at $39.59 in Monday's trading session.

Monday's Volume: 479,000
Three-Month Average Volume: 267,189
Volume % Change: 72%

From a technical perspective, ENV spiked modestly higher here into new 52-week high territory above some near-term overhead resistance at $38.70 with above-average volume. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $24.58 to its intraday high of $41.11. During that uptrend, shares of ENV have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in ENV as long as it's trending above some near-term support at $38 or at $37 and then once it sustains a move or close above Monday's high of $41.11 with volume that's near or above 267,189 shares. If we get that move soon, then ENV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $45 to $47.

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