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.
Teekay LNG Partners (TGP) provides marine transportation services for liquefied natural gas, liquefied petroleum gas and crude oil worldwide. This stock closed up 1.3% at $42.89 in Monday's trading session.
Monday's Volume: 428,402
Three-Month Average Volume: 159,011
Volume % Change: 174%
From a technical perspective, TGP bounced modestly higher here right above some near-term support levels at $41.94 to its 50-day moving average of $40.99 with above-average volume. This bounce higher on Monday is starting to push shares of TGP within range of triggering a big breakout trade. That trade will hit if TGP manages to take out some near-term overhead resistance levels at $43 to $43.63 and then above its 52-week high at $45.42 with high volume.
Traders should now look for long-biased trades in TGP as long as it's trending above support at $41.94 or above its 50-day at $40.99 and then once it sustains a move or close above those breakout levels with volume that hits near or above 159,011 shares. If that breakout triggers soon, then TGP will set up to enter new 52-week-high territory above $45.42, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55.