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.
Cone Midstream Partners
Cone Midstream Partners (CNNX) acquires, owns, operates and develops natural gas Cone and other midstream energy assets in the Marcellus Shale in Pennsylvania and West Virginia. This stock is trading up 2.1% to $22.74 in Monday's trading session.
Monday's Volume: 186,000
Three-Month Average Volume: 105,044
Volume % Change: 327%
From a technical perspective, CNNX is trending higher here right above some near-term support at $17.65 with above-average volume. This stock recently formed a double bottom chart pattern at $17.05 to $16.85. Following that bottom, shares of CNNX have now started to uptrend a bit and it's beginning to flirt with its 50-day moving average of $18.24. That move is starting to push shares of CNNX within range of triggering a near-term breakout trade. That trade will trigger if CNNX manages to take out some key near-term overhead resistance levels at $18.97 to $20 with high volume.
Traders should now look for long-biased trades in CNNX as long as it's trending above some near-term support at $17.65 and then once it sustains a move or close above those breakout levels with volume that hits near or above 105,044 shares. If that breakout begins soon, then CNNX will set up to re-test or possibly take out its next major overhead resistance levels at $22 to $23, or even $25.