Professional traders running mutual funds and hedge funds don't just look at a stock's price moves, they track big changes in volume activity. Often, when above-average volume moves into a stock, 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." These types of traders like to get in well before a bigger trend, so it's always a smart move to monitor unusual volume activity.
With that in mind, let's take a look at several stocks that are experiencing unusual volume activity.
- Thursday's Volume: 780,000
- Three-Month Average Volume: 184,501
- Volume % Change: 234%
From a technical perspective, Instructure (INST) gapped up sharply higher on Thursday and broke out above some near-term overhead resistance at $23.92 with strong upside volume. Market players should look for a continuation move to the upside in the short-term if this momentum continues.
Traders should look for long-biased trades in Instructure as long as it's trending above its 20-day at $23.24 and then once it sustains a move or close above Thursday's intraday high of $24.90 with volume that hits near or above 184,501 shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its all-time high of $26.92 a share.