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.
Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."
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.
Move (MOVE) operates an online network of Web sites for real estate search, finance and moving and home enthusiasts in North America. This stock closed up 2.6% at $14.96 in Monday's trading session.
Monday's Volume: 879,000
Three-Month Average Volume: 649,437
Volume % Change: 50%
From a technical perspective, MOVE jumped notably higher here right above its 200-day moving average of $14.05 with above-average volume. This spike higher on Monday is starting to push shares of MOVE within range of triggering a major breakout trade. That trade will hit if MOVE manages to take out some key near-term overhead resistance levels at Monday's intraday high of $15.07 to $15.46 with high volume.
Traders should now look for long-biased trades in MOVE as long as it's trending above its 200-day at $14.05 or above more near-term support at $13.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 649,437 shares. If that breakout triggers soon, then MOVE will set up to re-test or possibly take out its next major overhead resistance levels at $17 to $18, or even its 52-week high at $18.36.