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: 3.04 million
- Three-Month Average Volume: 2.81 million
- Volume % Change: 83%
From a technical perspective, Lululemon Athletica (LULU) is jumping higher here right off its new 52-week low of $49.40 with strong upside volume flows. This high-volume trend to the upside is now quickly pushing this stock within range of triggering a big breakout trade.
Traders should now look for long-biased trades in the athletic apparel retailer as long as it's trending above its new 52-week low of $49.40 and then once it breaks out above some near-term resistance levels at $51 to $52 and then above its recent gap-down-day high around $53 with volume that hits near or above 2.81 million shares. If that breakout fires off soon, then this stock will set up to re-fill some of its previous gap-down-day zone that started at $66.34 a share.