Stock Quotes in this Article: EV, QLYS, FEYE

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.

>>5 Hated Earnings Stocks You Should Love

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.

>>5 Rocket Stocks Ready for Blastoff

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

Eaton Vance

Eaton Vance (EV), through its subsidiaries, engages in the creation, marketing and management of investment funds in the U.S. This stock closed up 5.7% to $37.51 in Wednesday's trading session.

Wednesday's Volume: 1.01 million

Three-Month Average Volume: 786,229

Volume % Change: 268%

From a technical perspective, EV ripped sharply higher here back its 50-day moving average of $36.81 with heavy upside volume. This move pushed shares of EV into breakout territory, since the stock took out some near-term overhead resistance levels at $36.96 to $37.02. Shares of EV recently formed a major bottoming chart pattern, since the stock found buying interest each time it pulled back to around $35 a share. Shares of EV are now quickly moving within range of triggering another big breakout trade. That trade will hit if EV manages to take out Wednesday's high of $38.04 to some more key overhead resistance levels at its 200-day moving average of $38.87 to $38.98 with high volume.

Traders should now look for long-biased trades in EV as long as it's trending above Wednesday's low of $35.76 or above $35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 786,229 shares. If that breakout gets underway soon, then EV will set up to re-test or possibly take out its next major overhead resistance levels at $41 to $42, or even $43.

Qualys

Qualys (QLYS) provides cloud security and compliance solutions to enterprises, government entities and small and medium-sized businesses in the U.S. and internationally. This stock closed up 2.9% at $22.04 in Wednesday's trading session.

Wednesday's Volume: 545,000

Three-Month Average Volume: 184,147

Volume % Change: 201%

From a technical perspective, QLYS spiked higher here right above some near-term support at $20.51 with above-average volume. This stock has been uptrending a bit for the last few weeks, with shares moving higher from its low of $18 to its recent high of $22.44. During that move, shares of QLYS have been making mostly higher lows and higher highs, which is bullish technical price action. This spike higher on Wednesday is quickly pushing shares of QLYS within range of triggering a near-term breakout trade. That trade will hit if QLYS manages to take out some key overhead resistance levels at $22.44 and then once it clears its 50-day at $22.83 and its 200-day at $23.18 with high volume.

Traders should now look for long-biased trades in QLYS as long as it's trending above some near-term support at $20.51 or above more support at $19 and then once it sustains a move or close above those breakout levels with volume that this near or above 184,147 shares. If that breakout materializes soon, then QLYS will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $26.74. Any high-volume move above those levels will then give QLYS a chance to tag its next major overhead resistance levels at $29 to $30.

FireEye

FireEye (FEYE) provides products and services for detecting, preventing and resolving advanced cybersecurity threats. This stock closed up 2.6% at $31.12 in Wednesday's trading session.

Wednesday's Volume: 18.28 million

Three-Month Average Volume: 5.70 million

Volume % Change: 197%

From a technical perspective, FEYE jumped higher here with heavy upside volume. This stock has been uptrending a bit over the last few weeks, with shares moving higher from its low of $25.58 to its recent high of $32.08. During that uptrend, shares of FEYE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of FEYE within range of triggering a big breakout trade. That trade will hit if FEYE manages to take out some near-term overhead resistance at $32.08 with high volume.

Traders should now look for long-biased trades in FEYE as long as it's trending above $29 and then once it sustains a move or close above $32.08 with volume that hits near or above 5.70 million shares. If that breakout hits soon, then FEYE will set up to re-fill some of its recent gap-down-day zone from earlier this month that started just above $40.

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.


RELATED LINKS:







Follow Stockpickr on Twitter and become a fan on Facebook.

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.