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.
Tahoe Resources (TAHO) engages in the acquisition, exploration and development of mineral properties for the mining of precious metals in the Americas. This stock closed up 4.5% to $24.20 in Friday's trading session.
Friday's Volume: 349,000
Three-Month Average Volume: 109,097
Volume % Change: 386%
From a technical perspective, TAHO gapped up notably higher here with heavy upside volume. This move briefly pushed shares of TAHO into breakout and new 52-week-high territory, after the stock flirted with its previous 52-week high at $24.37. Shares of TAHO closed just below that level at $24.20.
Traders should now look for long-biased trades in TAHO as long as it's trending above Friday's low of $23.39 or above $22 and then once it sustains a move or close above Friday's high of $24.48 with volume that hits near or above 109,097 shares. If we get that move soon, then TAHO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $28 to $30.