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.
CoStar Group (CSGP) provides information, analytics and marketing services to the commercial real estate industry in the U.S., the U.K. and France. This stock closed up 0.76% to $183 in Thursday's trading session.
Thursday's Volume: 637,000
Three-Month Average Volume: 125,077
Volume % Change: 387%
From a technical perspective, CSGP spiked modestly higher here right above some near-term support at $172.50 with strong upside volume. This move is quickly pushing shares of CSGP within range of triggering a big breakout trade. That trade will hit if CSGP manages to take out some key overhead resistance levels at $185.77 to $185.96 and then once it clears more resistance at $187.72 to its 52-week high at $188.43 with high volume.