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.
Susser Petroleum Partners
Susser Petroleum Partners (SUSP) is engaged in the wholesale distribution of motor fuels primarily in Texas, New Mexico, Oklahoma and Louisiana. This stock closed up 1.7% at $42.99 in Wednesday's trading session.
Wednesday's Volume: 200,000
Three-Month Average Volume: 81,264
Volume % Change: 211%
From a technical perspective, SUSP trended modestly higher here right above some near-term support at $40.51 with above-average volume. This move is starting to push shares of SUSP within range of triggering a near-term breakout trade. That trade will hit if SUSP manages to take out Wednesday's intraday high of $43.08 to some more near-term overhead resistance at $45 with high volume.
Traders should now look for long-biased trades in SUSP as long as it's trending above some key near-term support at $40.51 and then once it sustains a move or close above those breakout levels with volume that this near or above 81,264 shares. If that breakout materializes soon, then SUSP will set up to re-test or possibly take out its next major overhead resistance levels at its 52-week high of $47.93.