Stock Quotes in this Article: ENOC, INFI, MM

WINDERMERE, Fla. (Stockpickr) -- Professional traders running mutual funds and hedge funds don’t just look at a stock’s price moves; they also track big changes in volume activity. Many times when above average volume moves into equity 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.”

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Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it’s always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.

With that in mind, let's take a look at several stocks rising on unusual volume today.

EnerNOC

EnerNOC (ENOC) is a provider of energy management applications, services and products for the smart grid, which include comprehensive demand response, data-driven energy efficiency, energy price and risk management and enterprise carbon management applications, services and products. This stock is trading up 8.8% at $10.96 in recent trading.

Today’s Volume: 487,000

Average Volume: 266,292

Volume % Change: 293%

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From a technical perspective, ENOC is ripping higher here with above average volume. This move has pushed ENOC into near-term breakout territory, since the stock has taken out some overhead resistance at $10.66.

Traders should now look for long-biased trades in ENOC as long as it’s trending above $10 with strong upside volume flows. I would consider any upside volume day that registers near or above 266,292 shares as bullish. Traders could also just look for long trades if ENOC can hold this breakout above $10.66 with high volume. If ENOC can hold this trend, then the stock has a treat chance of re-testing or possibly taking out its next significant overhead resistance levels at $11.75 to $12.24.

Infinity Pharmaceuticals

Infinity Pharmaceuticals (INFI), a drug discovery and development company, focuses on discovering, developing and delivering medicines to patients for diseases with significant unmet need. This stock is trading up 11.7% at $21.32 in recent trading.

Today’s Volume: 438,000

Average Volume: 313,931

Volume % Change: 129%

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From a technical perspective, INFI is skyrocketing here with above-average volume. This move has pushed INFI into breakout territory, since the stock has taken out some near-term overhead resistance levels at $18.37 to $18.53.

Traders should now look for long-biased trades in INFI off of weakness, as long as it continues to trend above $18.37 to $18.53 with strong upside volume flows. I would consider any upside volume day that registers near or above 313,931 shares. It’s never a great idea to chase a stock up as much as INFI is right now, so look to get long off weakness. If INFI can hold this trend, then the stock has a great chance of hitting $25 or higher in the near future.

Millennial Media

Millennial Media (MM) provides mobile advertising solutions worldwide. This stock is trading up 6% at $12.98 in recent trading.

Today’s Volume: 631,000

Average Volume: 418,053

Volume % Change: 140%

From a technical perspective, MM is bouncing strong here right near its 50-day moving average of $11.43 with heavy volume. This move has also pushed MM into breakout territory, since the stock has moved above some near-term overhead resistance at $11.99.

Traders should now look for long-biased trades in MM as long as it’s trending above $11.99 with strong upside volume flows. I would consider any upside volume day that registers near or above 418,053 shares as bullish. If MM can hold that trend, then this stock has an excellent chance of re-testing or possibly taking out its next major overhead resistance levels at $14.20 to $14.30. If those levels then get taken out with volume, look for MM to trend higher toward $16 to $18 in the near future.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.