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.
JD.com (JD), through its subsidiaries, operates as an online direct sales company in the People's Republic of China. This stock is trading up 2.3% to $36.52 in Monday's trading session.
Monday's Volume: 12.18 million
Three-Month Average Volume: 8.79 million
Volume % Change: 183%
From a technical perspective JD is trending to the upside here with an expansion in its upside volume. This stock attempted to trigger a big breakout trade in early trading on Monday, after shares of JD briefly trended above its all-time high at $36.75. This stock tagged an intraday high of $37.06, before it pulled back to just underneath that level. Traders should now look for a continuation move to the upside in the short-term if JD manages to take out Monday's intraday high of $37.06 with high volume.