Stock Quotes in this Article: CSL, TDG, DWRE

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.

Carlisle Companies

Carlisle Companies (CSL) operates as a diversified manufacturing company in the U.S. and internationally. This stock closed up 0.94% at $83.55 in Monday's trading session.

Monday's Volume: 569,000

Three-Month Average Volume: 284,779

Volume % Change: 89%

From a technical perspective, CSL jumped modestly higher here right above some near-term support levels at $82 to $81.59 with above-average volume. This stock has been uptrending for the last month, with shares moving higher from its low of $75.08 to its recent 52-week high of $84.73. During that uptrend, shares of CSL have been consistently making higher lows and higher highs, which is bullish technical price action. This jump higher on Monday is starting to push shares of CSL within range of triggering a big breakout trade. That trade will hit if CSL manages to take out Monday's high of $83.58 to its 52-week high of $84.73 with high volume.

Traders should now look for long-biased trades in CSL as long as it's trending above $82 to $81.59 and then once it sustains a move or close above those breakout levels with volume that's near or above 284,779 shares. If that breakout triggers soon, then CSL will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $90 to $95.

TransDigm Group

TransDigm Group (TDG), through its subsidiaries, designs, produces, and supplies engineered aerospace components for commercial and military aircraft customers in the U.S. This stock closed up 1.6% at $186.64 in Monday's trading session.

Monday's Volume: 837,000

Three-Month Average Volume: 421,327

Volume % Change: 75%

From a technical perspective, TDG spiked notably higher here right above its 50-day moving average of $180.66 with above-average volume. This stock recently formed a double bottom chart pattern at $172.11 to $172.93. Following that bottom, shares of TDG have started to uptrend with the stock moving higher from $172.11 to its intraday high of $186.71. That move has now pushed shares of TDG within range of triggering a big breakout trade. That trade will hit if TDG manages to take out Monday's high of $186.71 to its 52-week high of $187.64 with high volume.

Traders should now look for long-biased trades in TDG as long as it's trending above Monday's low of $183.31 or above its 50-day at $180.66 and then once it sustains a move or close above those breakout levels with volume that's near or above 421,327 shares. If that breakout gets underway soon, then TDG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $195 to $200.

Demandware

Demandware (DWRE) provides cloud-based digital commerce solutions in the U.S., Germany, the U.K., and internationally. This stock closed up 9.5% at $54.86 in Monday's trading session.

Monday's Volume: 1.60 million

Three-Month Average Volume: 598,705

Volume % Change: 193%

From a technical perspective, DWRE soared sharply higher here right above some near-term support at $47.50 with above-average volume. This spike higher on Monday pushed shares of DWRE into breakout territory, since the stock took out some near-term overhead resistance at $50.89. Shares of DWRE are now quickly moving within range of triggering another major breakout trade. That trade will hit if DWRE manages to take out some key near-term overhead resistance levels at $56.83 to its 200-day moving average at $57.30 and then once it clears its 50-day moving average of $58.58 with high volume.

Traders should now look for long-biased trades in DWRE as long as it's trending above $52.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 598,705 shares. If that breakout materializes soon, then DWRE will set up to re-test or possibly take out its next major overhead resistance levels at $62.50 to $66.87.

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.