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.
Repligen (RGEN), a life sciences company, develops, manufactures and markets consumable bioprocessing products for use in the production of monoclonal antibodies and other biologic drugs. This stock closed up 6.3% at $14.10 in Monday's trading session.
Monday's Volume: 1.11 million
Three-Month Average Volume: 512,171
Volume % Change: 108%
From a technical perspective, RGEN spiked sharply higher here and broke out above some near-term overhead resistance at $13.81 with strong upside volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $12.04 to its intraday high of $14.34. During that move, shares of RGEN 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 RGEN manages to take out Monday's high of $14.34 to its 50-day moving average at $14.71 with strong volume.
Traders should now look for long-biased trades in RGEN as long as it's trending above Monday's low of $13.04 or above more support at $12.06 and then once it sustains a move or close above $14.34 to $14.71 with volume that this near or above 512,171 shares. If we get that move soon, then RGEN will set up to re-test or possibly take out its next major overhead resistance levels at $15.73 to its 52-week high at $17.26.