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.
Kandi Technologies Group (KNDI), through its subsidiaries, engages in the design, development, manufacture and commercialization of various vehicles. This stock closed up 16.4% to $15.56 in Monday's trading session.
Monday's Volume: 8.72 million
Three-Month Average Volume: 2.14 million
Volume % Change: 259%
From a technical perspective, KNDI skyrocketed sharply higher here and broke out into new 52-week-high territory after the stock took out some near-term overhead resistance levels at $14.75 to $15.39 with monster upside volume. Traders should now look for a continuation move to the upside in the short-term if KNDI manages to take out Monday's high of $15.80 with strong volume.