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.
Zebra Technologies (ZBRA) manufactures and sells printers and related products worldwide. This stock closed up 1.9% to $71.92 in Friday's trading session.
Friday's Volume: 1.06 million
Three-Month Average Volume: 505,032
Volume % Change: 96%
From a technical perspective, ZBRA trended modestly higher here and broke out above some near-term overhead resistance at $71.87 with above-average volume. This move is quickly pushing shares of ZBRA within range of triggering another near-term breakout trade. That trade will hit if ZBRA manages to take out Friday's high of $72.02 to its 52-week high at $72.76 with high volume.
Traders should now look for long-biased trades in ZBRA as long as it's trending above Friday's low of $69.84 or above its 50-day at $68.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 505,032 shares. If that breakout materializes soon, then ZBRA will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout at $80 to $85.