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.
FlotekFTK data by YCharts
Flotek (FTK) develops and supplies oilfield products, services, and equipment to the oil, gas, and mining industries in the U.S. and internationally. This stock is trading up 6.8% to $13.25 in Thursday's trading session.
Thursday's Volume: 837,000
Three-Month Average Volume: 1.05 million
Volume % Change: 97%
From a technical perspective, Flotek is ripping higher here and breaking out above some near-term overhead resistance levels at $12.77 to its 50-day moving average of $12.89 with strong upside volume flows. This strong move to the upside on Thursday is coming after shares of Flotek formed a triple bottom chart pattern over the last two months, after buyers stepped in at $11.03, $11.25 and $11.11 a share. Market players should now look for a continuation move to the upside in the short-term if this stock manages to clear some more near-term overhead resistance levels at $14 to $14.55 with high volume.
Traders should now look for long-biased trades in Flotek as long as it's trending above its 50-day at $12.89 or above more near-term support at $12.50 and then once it sustains a move or close above $14 to $14.55 with volume that hits near or above 1.05 million shares. If that move gets started soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $16 to $17 a share.