6 Hot Unusual Volume Setups

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 sharp increase in share price.

Unusual volume can signal institutional 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 six stocks that are showing up on unusual volume scans.

Alibaba Group

  • Thursday's Volume: 37.09 million
  • Three-Month Average Volume: 9.46 million
  • Volume % Change: 280%

From a technical perspective, Alibaba Group (BABA) spiked notably higher here back above its 20-day moving average of $117.87 with monster upside volume. This high-volume bump to the upside is quickly pushing this stock within range of triggering a near-term breakout trade.

Traders should look for long-biased trades in Alibaba Group as long as it's trending above its 20-day at $117.87 and then once it breaks out above Thursday's intraday high of $122.63 to its all-time high of $124.34 with volume that hits near or above 9.46 million shares. Some possible upside targets off that breakout are $130 to $135, or even $140 a share.

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