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.
Spirit Airlines (SAVE) provides low-fare airline services. It operates approximately 250 daily flights to 50 destinations in the U.S., Caribbean and Latin America. This stock closed up 0.88% at $63 in Friday's trading session.
Friday's Volume: 7.78 million
Three-Month Average Volume: 1.06 million
Volume % Change: 781%
From a technical perspective, SAVE spiked modestly higher here right above its 50-day moving average of $59.08 with monster upside volume. This stock has been uptrending strong for the last month and change, since shares formed a double bottom chart pattern at $53.25 to $53.27. Following that bottom, shares of SAVE have ripped higher and are now approaching a near-term breakout trade. That trade will hit if SAVE manages to take out Friday's intraday high of $63.25 and then once it clears its 52-week high of $64.94 with high volume.
Traders should now look for long-biased trades in SAVE as long as it's trending above its 50-day at $59.08 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.06 million shares. If that breakout hits soon, then SAVE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $70 to $75.