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.
ANI Pharmaceuticals (ANIP), an integrated specialty pharmaceutical company, develops, manufactures and markets branded and generic prescription pharmaceuticals. This stock closed up 20.6% at $30.83 in Monday's trading session.
Monday's Volume: 675,000
Three-Month Average Volume: 196,653
Volume % Change: 213%
From a technical perspective, ANIP exploded higher here back above its 50-day moving average of $29.29 with heavy upside volume. This stock recently sold off from its high of $38.74 to its low of $19.90. Following the selloff, shares of ANIP have formed a V-shaped bottom as the stock has exploded higher back above its 50-day moving average. Market players should now look for a continuation move to the upside in the short-term if ANIP manages to take out Monday's intraday high of $31.01 with strong volume.
Traders should now look for long-biased trades in ANIP as long as it's trending above $28 or above $27.50 and then once it sustains a move or close above Monday's high of $31.01 with volume that hits near or above 196,653 shares. If we get that move soon, then ANIP will set up to re-test or possibly take out its next major overhead resistance levels at $34 to $35, or even its 52-week high at $38.74.