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.
Hawaiian Holdings (HA), is engaged in the scheduled air transportation of passengers and cargo. This stock closed up 4.8% at $14.57 in Monday's trading session.
Monday's Volume: 2.14 million
Three-Month Average Volume: 1.04 million
Volume % Change: 95%
From a technical perspective, HA ripped higher here back above its 50-day moving average of $14.12 with above-average volume. This strong spike to the upside on Monday is quickly pushing shares of HA within range of triggering a near-term breakout trade. That trade will hit if HA manages to take out Monday's intraday high of $14.61 to some more near-term overhead resistance at $15 with high volume.
Traders should now look for long-biased trades in HA as long as it's trending above Monday's intraday low of $13.80 or above more near-term support at $13.36 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.04 million shares. If that breakout triggers soon, then HA will set up to re-test or possibly take out its 52-week high at $16.49. Any high-volume move above that level will then give HA a chance to tag $18 to $20.