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.
Under Armour (UA), together with its subsidiaries, develops, markets and distributes branded performance apparel, footwear and accessories for men, women and youth primarily in North America, Europe, the Middle East, Africa, Asia and Latin America. This stock closed up 3.6% to $48.89 in Wednesday's trading session.
Wednesday's Volume: 42.16 million
Three-Month Average Volume: 3.77 million
Volume % Change: 1207%
From a technical perspective, UA jumped higher here right above some near-term support at $46 with monster upside volume. This spike higher on Wednesday also occurred right above its 200-day moving average of $44.32. Market players should now look for a continuation move higher in the short-term if UA manages to take out Wednesday's high of $49.89 with high volume.
Traders should now look for long-biased trades in UA as long as it's trending above Wednesday's low of $47.12 or above its 200-day at $44.32 and then once it sustains a move or close above $49.89 with volume that hits near or above 3.77 million shares. If that move starts soon, then UA will set up to re-test or possibly take out its next major overhead resistance levels at $55 to its 50-day moving average of $55.68. Any high-volume move above those levels will then give UA a chance to tag its next major overhead resistance levels at $60 to its 52-week high at $62.40.