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.
Blyth (BTH), together with its subsidiaries, operates as a direct to consumer marketing company in North America, Europe and Australia. This stock closed up 6.1% to $10.65 in Monday's trading session.
Monday's Volume: 347,000
Three-Month Average Volume: 133,351
Volume % Change: 133%
From a technical perspective, BTH trended sharply higher here right above its 50-day moving average of $9.61 with above-average volume. This move pushed shares of BTH into breakout territory, after the stock took out some near-term overhead resistance at $10.54. Market players should now look for a continuation move higher in the short-term if BTH manages to take out Monday's high of $10.82 to some more past resistance at $11.10 with high volume.
Traders should now look for long-biased trades in BTH as long as it's trending above Monday's low of $10.12 or above its 50-day at $9.61 and then once it sustains a move or close above $10.82 to $11.10 with volume that hits near or above 133,351 shares. If we get that move soon, then BTH will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $11.63 or $13.