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.
Wintrust Financial (WTFC), through its subsidiaries, provides banking and other financial products and services to customers in the Chicago metropolitan area and in southeastern Wisconsin. This stock closed up 1.2% at $46.28 in Friday's trading session.
Friday's Volume: 1.12 million
Three-Month Average Volume: 385,428
Volume % Change: 268%
From a technical perspective, WTFC spiked modestly higher here right above its 50-day moving average of $45.21 with above-average volume. This move is starting to push shares of WTFC within range of triggering a major breakout trade. That trade will hit if WTFC manages to take out Friday's high of $46.77 and then once it clears its 52-week high at $48.06 with high volume.
Traders should now look for long-biased trades in WTFC as long as it's trending above its 50-day at $45.21 or above more support at $44 and then once it sustains a move or close above those breakout levels with volume that's near or above 385,428 shares. If that breakout hits soon, then WTFC will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60.