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.
Voxeljet AG (VJET) provides three-dimensional printers and on-demand parts services to industrial and commercial customers. This stock closed up 8.5% at $19.90 in Wednesday's trading session.
Wednesday's Volume: 764,000
Three-Month Average Volume: 649,529
Volume % Change: 50%
From a technical perspective, VJET ripped substantially higher here right above some near-term support at $17.56 with above-average volume. This stock recently formed a double bottom chart pattern at $17.88 to $17.56. Following that bottom, shares of VJET have started to spike sharply higher and it's breaking out above some near-term overhead resistance at $19.48. Market players should now look for a continuation move to the upside in the near-term if VJET manages to take out Wednesday's intraday high of $19.95 with strong volume.
Traders should now look for long-biased trades in VJET as long as it's trending above Wednesday's intraday low of $18.30 or above some more near-term support at $17.56 and then once it sustains a move or close above $19.95 with volume that's near or above 649,529 shares. If that move kicks off soon, then VJET will set up to re-test or possibly take out its next major overhead resistance levels at $21.64 to $22. Any high-volume move above those levels will then give VJET a chance to tag $24.