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.
Hub Group (HUBG), an asset-light freight transportation management company, provides intermodal, truck brokerage, and logistics services in North America. This stock closed up 2.1% at $41.15 in Friday's trading session.
Friday's Volume: 504,000
Three-Month Average Volume: 293,360
Volume % Change: 79%
From a technical perspective, HUBG bounced modestly higher here right above its 50-day moving average of $40.16 with above-average volume. This move is starting to push shares of HUBG within range of triggering a major breakout trade. That trade will hit if HUBG manages to take out some near-term overhead resistance levels at $41.81 to $42.50 and then once it takes out its 52-week high of $43.09 with high volume.
Traders should now look for long-biased trades in HUBG as long as it's trending above its 50-day at $40.16 or above its 200-day at $38.66 and then once it sustains a move or close above those breakout levels with volume that's near or above 293,360 shares. If that breakout starts soon, then HUBG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $48 to $50.