5 Stocks Spiking on Big Volume

Tickers in this article: AGO CNX DGX DPM JCP
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. Often when above-average volume moves into an 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."

>>5 Stocks Ready to Break Out

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.

>>5 Under-$10 Stocks Poised to Pop DCP Midstream Partners DCP Midstream Partners (DPM) is engaged in the business of gathering, compressing, treating, processing, transporting and selling natural gas; producing, transporting, storing and selling propane in wholesale markets; and transporting and selling NGLs and condensate. This stock is trading up 2% at $42.10 in recent trading.

Today's Volume: 241,000

Average Volume: 186,805

Volume % Change: 95%

From a technical perspective, DPM is bouncing modestly higher here back above its 200-day moving average of $41.86 with above-average volume. This move is also coming just above its 50-day moving average of $41.12.

Traders should now look for long-biased trades in DPM as long as it's trending above its 50-day at $41.12, and then once it sustains a move or close above its 200-day at $41.86 with volume that hits near or above 186,805 shares. If DPM can maintain that trend, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $43.75 to $45.

Assured Guaranty

Assured Guaranty (AGO) provides credit enhancement products to the public finance, structured finance and mortgage markets. This stock is trading up 2.6% at $14.99 in recent trading.

Today's Volume: 3.67 million

Average Volume: 1.35 million

Volume % Change: 180%

Shares of AGO are moving higher today after MKM Partners maintained its buy rating and $28 12-month price target on the stock, despite the fact that Moody's Investors Service downgraded its rating on the stock to A2 from Aa3.

From a technical perspective, AG is ripping higher here right off its 50-day moving average of $14.16 with heavy upside volume. This move is quickly pushing shares of AGO within range of triggering a major breakout trade. That trade will hit if AGO manages to clear some key overhead resistance levels at $15.72 to $15.83 with high volume.