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.
Shutterfly (SFLY) is engaged in the manufacture and retail of digital personalized products and services in the U.S. This stock closed up 3.2% to $50.60 in Monday's trading session.
Monday's Volume: 1.69 million
Three-Month Average Volume: 954,225
Volume % Change: 125%
From a technical perspective, SFLY jumped sharply higher here right off its 50-day moving average of $47.38 with strong upside volume. This move pushed shares of SFLY into breakout territory, since the stock took out some near-term overhead resistance at $50.16. Shares of SFLY are now quickly moving within range of triggering another near-term breakout trade. That trade will hit if SFLY manages to take out Monday's high of $51.69 to some more near-term overhead resistance levels at $52 to $52.50 with high volume.