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.
Aramark (ARMK) provides food, facilities and uniform services in North America and internationally. This stock closed up 3.5% to $29.89 in Friday's trading session.
Friday's Volume: 1.74 million
Three-Month Average Volume: 471,462
Volume % Change: 258%
From a technical perspective, ARMK ripped higher here with strong upside volume. This stock recently formed a double bottom chart pattern $27.29 to $27.22. Following that bottom, shares of ARMK have started to uptrend and flirt with new all-time-high territory, after the stock challenged its previous all-time high at $29.89. Shares of ARMK hit an intraday high on Friday of $29.98 before closing at $29.89. Market players should now look for a continuation move higher in the short-term if ARMK manages to take out its all-time high at $29.89 with high volume.
Traders should now look for long-biased trades in ARMK as long as it's trending above Friday's low of $28.73 or above $28 and then once it sustains a move or close above $29.89 with volume that hits near or above 471,462 shares. If that move starts soon, then ARMK will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $40.