Stock Quotes in this Article: MEG, TWTR, WDAT

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.

Media General

Media General (MEG) owns and operates broadcast television stations and related Web sites and mobile news applications in the U.S. This stock closed up 5.5% to $18.36 in Wednesday's trading session.

Wednesday's Volume: 1.02 million

Three-Month Average Volume: 371,013

Volume % Change: 201%

From a technical perspective, MEG gapped up sharply higher here and broke out above some near-term overhead resistance levels at $17.50 to $17.54 with high volume. This move is now pushing shares of MEG within range of triggering another big breakout trade. That trade will hit if MEG manages to take out Wednesday's intraday high of $18.51 and then once it clears more key overhead resistance levels at $18.92 to $19.69 with high volume.

Traders should now look for long-biased trades in MEG as long as it's trending above Wednesday's low of $17.86 and then once it sustains a move or close above those breakout levels with volume that hits near or above 371,013 shares. If that breakout hits soon, then MEG will set up to re-test or possibly take out its next major overhead resistance levels at $23 to its 52-week high at $23.97.

Twitter

Twitter (TWTR) is a global platform for public self-expression and conversation in real time. This stock closed up 10.6% to $33.77 in Wednesday's trading session.

Wednesday's Volume: 60.29 million

Three-Month Average Volume: 17.65 million

Volume % Change: 241%

From a technical perspective, TWTR exploded higher here above some near-term support at $30.38 with monster upside volume. This stock recently formed a double bottom chart pattern at $29.51 to $30.38. Following that bottom, shares of TWTR have now soared higher and the stock is quickly approaching a major breakout trade. That trade will hit if TWTR manages to take out Wednesday's intraday high of $33.84 to some more key overhead resistance at $34.10 with high volume.

Traders should now look for long-biased trades in TWTR as long as it's trending above $32 or above Wednesday's low of $31.09 and then once it sustains a move or close above those breakout levels with volume that hits near or above 17.65 million shares. If that breakout kicks off soon, then TWTR will set up to re-fill some of its previous gap-down-day zone from earlier this month that started near $40.

Workday

Workday (WDAY) provides enterprise cloud applications for global human resources and finance in the U.S. and internationally. This stock closed up 2.3% at $84.04 in Wednesday's trading session.

Wednesday's Volume: 7.89 million

Three-Month Average Volume: 2.86 million

Volume % Change: 231%

From a technical perspective, WDAY ripped modestly higher here right off its 50-day moving average of $80.13 and back above its 200-day moving average of $82.97 with strong upside volume flows. This spike higher on Wednesday also pushed shares of WDAY into breakout territory, since the stock took out some more key overhead resistance levels at $82 to $83.16. Traders should now look for a continuation move to the upside for shares of WDAY in the short-term if the stock manages to take out Wednesday's intraday high of $87.24 with strong volume.

Traders should now look for long-biased trades in WDAY as long as it's trending above its 200-day at $82.97 and then once it sustains a move or close above $87.24 with volume that hits near or above 2.86 million shares. If that move starts soon, then WDAY will set up to re-test or possibly take out its next major overhead resistance levels at $96.50 to $100, or even $105.50.

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.