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Byline: NANCY GONDO
To understand the influence of big investors on a potential winning stock, take a step back and analyze weekly price and volume changes.
It's important to note trading activity of mutual funds and other big buyers since they account for more than 70% of leading stocks' action.
Weekly charts can reveal their support, which is critical in picking a leading stock.
Sound price bases usually have more up weeks in above-average volume than down weeks in above-average volume.
Down weeks aren't all bad, either. If the stock closes in the upper half of its weekly range on heavy trade, that can be a sign of support.
Consider Schnitzer Steel Industries, a highly ranked IBD 100 fixture. You can access weekly charts from IBD's Web site at investors.com. Blue bars show up weeks; red bars are down weeks.