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Byline: NANCY GONDO
Volume can provide helpful clues for stocks on your watch list. It often helps you determine whether mutual funds and other big players are buying or selling.
Rising prices on heavy turnover indicate big money is buying stock; shares falling on brisk trade may mean lots of selling. You generally want to see more up weeks than down weeks on heavy volume as a stock builds its base. High turnover on a breakout is also a good sign.
F5 Networks rallied more than sixfold from its mid-October 2002 low to its three-year high the week ended Jan. 23, 2004 (1). It then pulled back a steeper-than-average 45% over the next six months. Given the ...