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.
WuXi Pharma Tech (WX), through its subsidiaries, operates as a pharmaceutical, biotechnology and medical device research and development outsourcing company in China and the U.S. This stock closed up 3.4% at $39.86 in Monday's trading session.
Monday's Volume: 1.50 million
Three-Month Average Volume: 683,312
Volume % Change: 109%
From a technical perspective, WX jumped higher here into new 52-week-high territory which above-average volume. This stock recently formed a double bottom chart pattern at $32.50 to $32.40. Following that bottom, shares of WX have entered an uptrend, with shares moving higher from its low $32.40 to its intraday high of $40.61. During that uptrend, shares of WX have been consistently making higher lows and higher highs, which is bullish technical price action.