Stock Quotes in this Article: DXPE, SWIR, IMPV

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.

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

DXP Enterprises

DXP Enterprises (DXPE) is engaged in distributing maintenance, repair and operating products, equipment and services to industrial customers in the U.S. This stock closed up 10.9% to $78.78 in Friday's trading session.

Friday's Volume: 422,000

Three-Month Average Volume: 222,455

Volume % Change: 95%

From a technical perspective, DXPE gapped up sharply higher here right above its 50-day moving average of $71.45 and into breakout territory above some near-term overhead resistance at $77.96 with strong upside volume flows. Market players should now look for a continuation move to the upside in the short-term if DXPE manages to take out Friday's intraday high of $79.98 with high volume.

Traders should now look for long-biased trades in DXPE as long as it's trending above $75 or above Friday's intraday low of $73.25 and then once it sustains a move or close above $79.98 with volume that hits near or above 222,455 shares. If that move begins soon, then DXPE will set up to re-fill the rest of its gap-down-day zone from May that started near $90.

Imperva

Imperva (IMPV) develops, markets, sells, services and supports data center security solutions that protect high value applications and data assets in physical and virtual data centers. This stock closed up 13.8% to $25.25 in Friday's trading session.

Friday's Volume: 2 million

Three-Month Average Volume: 550,228

Volume % Change: 196%

From a technical perspective, IMPV gapped up sharply higher here and broke out above some near-term overhead resistance at $23.68 with strong upside volume. This large move to the upside on Friday is quickly pushing shares of IMPV within range of triggering another big breakout trade. That trade will hit if IMPV manages to take out some key overhead resistance levels at $27.30 to $27.66 with high volume.

Traders should now look for long-biased trades in IMPV as long as it's trending above Friday's intraday low of $24.92 or above its 50-day moving average of $22.60 and then once it sustains a move or close above those breakout levels with volume that hits near or above 550,228 shares. If that breakout triggers soon, then IMPV will set up to re-test or possibly take out its gap-down-day high from April at $32.10.

Sierra Wireless

Sierra Wireless (SWIR), together with its subsidiaries, provides cellular wireless solutions to the machine-to-machine and connected device markets in North America, Europe and the Asia Pacific. This stock closed up 5.7% to $20.09 in Friday's trading session.

Friday's Volume: 1.16 million

Three-Month Average Volume: 503,406

Volume % Change: 191%

From a technical perspective, SWIR gapped up sharply higher here back above its 50-day moving average of $19.61 with above-average volume. This sharp spike to the upside on Friday also briefly pushed shares of SWIR back above its 200-day moving average of $20.45, before the stock closed just below that level at $20.09. Shares of SWIR are now starting to trend within range of triggering another big breakout trade. That trade will hit if SWIR manages to take out Friday's intraday high of $20.74 to some more near-term overhead resistance at $21.31 with high volume.

Traders should now look for long-biased trades in SWIR as long as it's trending above Friday's intraday low of $19.43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 503,406 shares. If that breakout hits soon, then SWIR will set up to re-test or possibly take out its next major overhead resistance levels at $22.44 to $24, or even $25.

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.