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.
LIN Media (LIN), together with its subsidiaries, operates as a local multimedia company in the U.S. This stock closed up 5.7% at $27.25 in Wednesday's trading session.
Wednesday's Volume: 2.30 million
Three-Month Average Volume: 392,027
Volume % Change: 333%
From a technical perspective, LIN spiked sharply higher here right above its 50-day moving average of $24.93 with heavy upside volume. This move pushed shares of LIN into breakout territory, since the stock took out some key near-term overhead resistance levels at $26.34 to $27. Shares of LIN are now starting to move within range of triggering another big breakout trade. That trade will hit if LIN manages to take out Wednesday's intraday high of $27.60 to some more key overhead resistance at $28.28 to its 52-week high of $29.24 with high volume.
Traders should now look for long-biased trades in LIN as long as it's trending above $26.34 or above $25 and then once it sustains a move or close above those breakout levels with volume that's near or above 392,027 shares. If that breakout kicks off soon, then LIN will set up to enter new 52-week-high territory above $29.24, which is bullish technical price action. Some possible upside targets off that breakout are $33 to $35.