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.
B&G Foods (BGS) manufactures, sells and distributes shelf-stable food and household products in the U.S., Canada and Puerto Rico. This stock closed up 3.8% at $31.57 in Friday's trading session.
Friday's Volume: 629,000
Three-Month Average Volume: 352,443
Volume % Change: 99%
From a technical perspective, BGS gapped up notably higher here into breakout territory above some near-term overhead resistance at $30.59 with above-average volume. This stock has been uptrending for the last month and change, with shares moving higher from its low of $27.05 to its intraday high of $31.84. During that uptrend, shares of BGS have been consistently making higher lows and higher highs, which is bullish technical price action. Market players should now look for a continuation move to the upside in the short-term if BGS manages to take out Friday's high of $31.84 with strong volume.
Traders should now look for long-biased trades in BGS as long as it's trending above Fridays low $31.09 or above its 50-day at $30.28 and then once it sustains a move or close above $31.84 with volume that hits near or above 352,443 shares. If that move kicks off soon, then BGS will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $32.77 to $34.