Stock Quotes in this Article: GME, HYGS, BITA

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.

GameStop

GameStop (GME) operates as a video game retailer. This stock closed up 8.8% to $40.62 in Friday's trading session.

Friday's Volume: 7.30 million

Three-Month Average Volume: 4.53 million

Volume % Change: 175%

From a technical perspective, GME ripped sharply higher here right off its 50-day moving average of $36.90 with heavy upside volume. This move pushed shares of GME into breakout territory, after the stock took out some near-term overhead resistance at $39.95. Market players should now look for a continuation move higher in the short-term if GME manages to take out Friday's high of $40.65 with strong volume.

Traders should now look for long-biased trades in GME as long as it's trending above $39 or $38 and then once it sustains a move or close above Friday's high of $40.65 with volume that hits near or above 4.53 million shares. If we get that move soon, the GME will set up to re-fill more of its previous gap-down-day zone from January that started at $45.45.

Bitauto

Bitauto (BITA) provides Internet content and marketing services for the automotive industry primarily in the People's Republic of China. This stock closed up 8% at $35.88 in Friday's trading session.

Friday's Volume: 1.43 million

Three-Month Average Volume: 1.30 million

Volume % Change: 50%

From a technical perspective, BITA ripped sharply higher here right above some near-term support at $32.19 with above-average volume. This move also push shares of BITA back above its 50-day moving average of $35.79, since the stock closed Friday's trading session at $35.88. Market players should now look for a continuation move to the upside in the short-term if BITA manages to take out Friday's high of $36.13 to more near-term resistance at $38.18 with high volume.

Traders should now look for long-biased trades in BITA as long as it's trending above $34 or $33 and then once it sustains a move or close above $36.13 to $38.18 with volume that's near or above 1.30 million shares. If we get that move soon, then BITA will set up to re-test or possibly take out its next major overhead resistance levels $41.50 to its 52-week high at $46.93.

Hydrogenics

Hydrogenics (HYGS), together with its subsidiaries, designs, develops and manufactures hydrogen generation products based on water electrolysis technology and fuel cell products based on proton exchange membrane technology. This stock closed up 7.7% at $27.94 in Friday's trading session.

Friday's Volume: 423,000

Three-Month Average Volume: 184,889

Volume % Change: 122%

From a technical perspective, HYGS ripped sharply higher here right off its 50-day moving average of $25.75 with above-average volume. This spike higher on Friday is quickly pushing shares of HYGS within range of triggering a near-term breakout trade. That trade will hit if HYGS manages to take out Friday's high of $27.95 to some more near-term overhead resistance at $28.75 with high volume.

Traders should now look for long-biased trades in HYGS as long as it's trending above its 50-day at $25.75 or above more near-term support at $25.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 184,889 shares. If that breakout hits soon, then HYGS will set up to re-test or possibly take out its next major overhead resistance levels at $30 to $33. Any high-volume move above those levels will then give HYGS a chance to challenge its 52-week high at $35.52.

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.