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.
Nimble Storage (NMBL) designs & sells a flash-optimized hybrid storage platform that it believes is disrupting the market by enabling improvements in application performance and storage capacity with data protection. This stock closed up 6.2% to $26.45 in Friday's trading session.
Friday's Volume: 951,000
Three-Month Average Volume: 531,179
Volume % Change: 128%
From a technical perspective, NMBL ripped sharply higher here with above-average volume. Shares of NMBL recently broke out above some near-term overhead resistance at $24.18 with strong upside volume. Market players should now look for a continuation move higher in the short-term for NMBL if it manages to clear Friday's intraday high of $26.80 with strong upside volume flows.
Traders should now look for long-biased trades in NMBL as long as it's trending above Friday's low of $24.65 or above $23 and then once it sustains a move or close above Friday's high of $26.80 with volume that hits near or above 531,179 shares. If that move gets underway soon, then NMBL will set up to re-test or possibly take out its next major overhead resistance levels at $30 to its 50-day moving average of $33.17.