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.
Clean Harbors (CLH), through its subsidiaries, provides environmental, energy and industrial services in the U.S., Puerto Rico, Canada and internationally. This stock closed up 2.2% to $47.26 in Friday's trading session.
Friday's Volume: 2.38 million
Three-Month Average Volume: 738,013
Volume % Change: 318%
From a technical perspective, CLH bounced higher here right above its recent low of $44.95 with strong upside volume. This stock recently gapped down sharply lower from around $54 to $44.95 with heavy downside volume. Following that move, shares of CLH have started to rebound off oversold levels, since its current relative strength index reading is 23.99. Oversold can always get more oversold, but it's also a level where a stock can experience a sharp bounce higher once buyers move in.
Traders should now look for long-biased trades in CLH as long as it's trending above Friday's low of $45.51 or above its recent low of $44.95 and then once it sustains a move or close above its gap-down-day high of $47.96 with volume that hits near or above 738,013 shares. If we get that move soon, the CLH will set up to re-fill some of its previous gap-down-day zone that started near $54.
JinkoSolar (JKS), together with its subsidiaries, engages in designing, developing, producing and marketing photovoltaic products in the People's Republic of China and internationally. This stock closed up 6.2% to $32.72 in Friday's trading session.
Friday's Volume: 4.71 million
Three-Month Average Volume: 2.05 million
Volume % Change: 121%
From a technical perspective, JKS bounced sharply higher here right off its 50-day moving average of $31.15 with above-average volume. This stock has been trending higher for the last month, with shares moving up from its low of $25.45 to its intraday high of $32.80. During that move, shares of JKS have been making mostly higher lows and higher highs, which is bullish technical price action. Traders should now look for a continuation move higher in the short-term if JKS manages to take out Friday's high of $32.80 with strong volume.