Professional investors running mutual funds and hedge funds don't just look at a stock's fundamentals, they also track unusual volume. Often, when heavy volume hits a stock, it precedes a notable increase in volatility.
Unusual volume can signal large fund activity, such as insider buying or selling, or buying or selling by "superinvestors." These types of investors like to get in well before a bigger trend, so it's always prudent to scan the market for unusual volume activity across all sectors.
With that in mind, let's take a look at several stocks that are experiencing unusual volume activity.
- Wednesday's Volume: 2.48 million
- Three-Month Average Volume: 633,885
- Volume % Change: 317%
From a technical perspective, IAC/InterActiveCorp (IAC) spiked higher right above its 50-day at $74.54 with monster upside volume flows. This high-volume bump to the upside is now quickly pushing this stock within range of triggering a major breakout trade.
Traders should now look for long-biased trades in IAC/InterActiveCorp as long as it's trending above its 50-day at $74.54 or above more support at $74.05 and then once it breaks out above some near-term resistance levels at $76.48 to its 52-week high of $77.46 with volume that hits near or above 633,885 shares. If that breakout triggers soon, then this stock will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $80 to $85, or even $90 a share.