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.
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.
With that in mind, let's take a look at several stocks rising on unusual volume recently.
Marin Software (MRIN) operates a cloud-based digital advertising management platform. This stock closed up 14.1% to $11.25 in Wednesday's trading session.
Wednesday's Volume: 1.23 million
Three-Month Average Volume: 167,810
Volume % Change: 693%
From a technical perspective, MRIN skyrocketed higher here right above its 50-day moving average of $9.91 and above some near-term overhead resistance levels at $10.44 to $11.13 with heavy upside volume. This move also briefly pushed shares of MRIN back above its 200-day moving average of $11.33, before the stock closed just below that level at $11.25. Market players should now look for a continuation move higher in the short-term if MRIN manages to take out Wednesday's high of $11.49 with strong volume.
Traders should now look for long-biased trades in MRIN as long as it's trending above $10.40 or above Wednesday's low of $10.13 and then once it sustains a move or close above $11.49 with volume that hits near or above 167,810 shares. If we get that move soon, then MRIN will set up to re-test or possibly take out its next major overhead resistance levels $12.84 to $13.50.