Professional investors running mutual funds and hedge funds don't just look at a company'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 or "superinvestors" buying or selling. 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.
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- Monday's Volume: 47.38 million
- Three-Month Average Volume: 19.31 million
- Volume % Change: 163%
From a technical perspective, Twitter (TWTR) ripped higher here and closed back above its 200-day moving average of $17.53 with strong volume. Market players should now look for a continuation move to the upside in the short term, if it manages to clear some key resistance levels.
Traders should now look for long-biased trades in Twitter as long as it's trending above Monday's intraday low of $16.97 and then once it manages to clear Monday's intraday high of $17.65 with volume that hits near or above 19.31 million shares. If that move gets started soon, then this stock will set up to re-test or possibly take out its next key resistance levels at $18.77 to $20 a share.