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.
Omega Protein (OME) develops, produces and delivers healthy products to enhance the nutritional integrity of foods, dietary supplements and animal feeds worldwide. This stock is trading up 2.7% to $12.97 in Monday's trading session.
Monday's Volume: 166,000
Three-Month Average Volume: 138,311
Volume % Change: 120%
From a technical perspective, OME is jumping notably higher here right above some key near-term support levels at $12.56 to its 200-day moving average of $12.48 with above-average volume. This spike higher on Monday has also started to push shares of OME back above its 50-day moving average of $12.83. This jump to the upside is now starting to push shares of OME within range of triggering a near-term breakout trade above some key overhead resistance levels. That trade will hit if OME manages to clear some near-term overhead resistance levels at $13.57 to $14 with high volume.