Stock Quotes in this Article: RGEN, GMED, KTWO

DELAFIELD, Wis. (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.

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Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

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 recently.

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Repligen

Repligen (RGEN), a life sciences company, develops, manufactures, and markets consumable bioprocessing products for use in the production of monoclonal antibodies and other biologic drugs. This stock closed up 2.9% at $20.38 in Wednesday's trading session.

Wednesday's Volume: 1.05 million

Three-Month Average Volume: 440,336

Volume % Change: 159%

From a technical perspective, RGEN jumped notably higher here with above-average volume. This stock recently formed a double bottom chart pattern at $18.84 to $19.04. Following that bottom, shares of RGEN have now started to trend higher and move within range of triggering a big breakout trade. That trade will hit if RGEN manages to take out some key near-term overhead resistance levels at $20.93 to its 50-day moving average of $21.81 with high volume.

Traders should now look for long-biased trades in RGEN as long as it's trending above those double bottom support levels and then once it sustains a move or close above those breakout levels with volume that hits near or above 440,336 shares. If that breakout develops soon, then RGEN will set up to re-test or possibly take out its next major overhead resistance levels at $23.69 to $23.98, or its 52-week high at $24.68.

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Globus Medical

Globus Medical (GMED), a medical device company, focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. This stock closed up 2.2% at $18.54 in Wednesday's trading session.

Wednesday's Volume: 971,000

Three-Month Average Volume: 617,502

Volume % Change: 80%

From a technical perspective, GMED trended higher here right above some near-term support at $18.03 with above-average volume. This stock recently gapped down sharply lower from above $22 to $17.45 with heavy downside volume. Following that move, shares of GMED have started to consolidated and move sideways, with the stock trending between $17.45 on the downside and $19.46 on the upside. Shares of GMED have now started to move within range of triggering a big breakout trade. That trade will hit if GMED manages to take out some key overhead resistance levels at $19 to $19.46 with high volume.

Traders should now look for long-biased trades in GMED as long as it's trending above some near-term support at $18.03 or above its recent low of $17.45 and then once it sustains a move or close above those breakout levels with volume that's near or above 617,502 shares. If that move develops soon, then GMED will set up to re-fill some of its previous gap-down-day zone from August that started just above $22.

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K2M Group

K2M Group (KTWO), a medical device company, focuses on designing, developing, and commercializing proprietary complex spine technologies and techniques in the U.S. and internationally. This stock closed up 4.2% at $14.96 in Wednesday's trading session.

Wednesday's Volume: 418,000

Three-Month Average Volume: 125,177

Volume % Change: 280%

From a technical perspective, KTWO ripped sharply higher here right above some near-term support at $14.10 with strong upside volume flows. This stock has now formed a major bottoming chart pattern over the last three months, with shares finding buying interest each time it's pulled back to around $14 a share. Shares of KTWO have now started to spike higher above those support levels and it's quickly moving within range of triggering a big breakout trade. That trade will hit if KTWO manages to take out some key near-term overhead resistance levels at $15 to $15.38 and then above its 50-day moving average of $15.41 with high volume.

Traders should now look for long-biased trades in KTWO as long as it's trending above some near-term support levels at $14 or at $13.82 and then once it sustains a move or close above those breakout levels with volume that's near or above 125,177 shares. If that breakout materializes soon, then KTWO will set up to re-test or possibly take out its next major overhead resistance levels at $16.50 to $17.50, or even its all-time high at $17.98.

Read More: 10 Stocks George Soros Is Buying

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

-- Written by Roberto Pedone in Delafield, Wis.


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

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.