Stock Quotes in this Article: WAGE, CSTE, EOPN

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.

CaesarStone Sdot-Yam

CaesarStone Sdot-Yam (CSTE), manufactures and sells engineered quartz surfaces under the Caesarstone brand primarily the U.S., Australia, Canada and Israel. This stock closed up 11% at $48.76 in Wednesday's trading session.

Wednesday's Volume: 1.21 million

Three-Month Average Volume: 286,791

Volume % Change: 299%

From a technical perspective, CSTE gapped up sharply higher here back above its 50-day moving average of $47.08 with above-average volume. This large spike to the upside on Wednesday also pushed shares of CSTE into breakout territory, since it took out some near-term overhead resistance at $48. Market players should now look for a continuation move to the upside in the short-term if CSTE manages to take out Wednesday's intraday high of $49.88 with high volume.

Traders should now look for long-biased trades in CSTE as long as it's trending above Wednesday's intraday low of $46.50 and then once it sustains a move or close above $49.88 with volume that's near or above 286,791 shares. If that move gets underway soon, then CSTE will set up to re-test or possibly take out its next major overhead resistance levels at $51.67 to $52, or even $56.

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E2open

E2open (EOPN) provides cloud-based, on-demand software solutions for supply chain management. This stock closed up 1.1% at $16.15 in Wednesday's trading session.

Wednesday's Volume: 443,000

Three-Month Average Volume: 196,695

Volume % Change: 125%

From a technical perspective, EOPN trended modestly higher here right above some near-term support at $15.60 with above-average volume. This stock recently dropped sharply lower from its July high of $21.90 to its 52-week low of $15.13. Following that drop, shares of EOPN have stated to rebound a bit and it's now moving within range of triggering a near-term breakout trade. That trade will hit if EOPN manages to take out some near-term overhead resistance levels at $16.44 to $16.74 with high volume.

Traders should now look for long-biased trades in EOPN as long as it's trending above some key near-term support levels at $15.60 or its 52-week low of $15.13 and then once it sustains a move or close above those breakout levels with volume that's near or above 196,695 shares. If that breakout hits soon, then EOPN will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $18.03 to around $20, or even its 200-day moving average of $21.38.

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WageWorks

WageWorks (WAGE) provides consumer-directed benefits programs to employees to save money on taxes in the U.S. This stock closed up 3.9% at $45.96 in Wednesday's trading session.

Wednesday's Volume: 599,000

Three-Month Average Volume: 386,411

Volume % Change: 65%

From a technical perspective, WAGE jumped higher here back above its 50-day moving average of $44.71 with above-average volume. This stock recently formed a double bottom chart pattern at $49.92 to $40.37. Following that bottom, shares of WAGE have started to uptrend and it's now quickly moving within range of triggering a near-term breakout trade. That trade will hit if WAGE manages to take out Wednesday's intraday high of $46.18 to some more key overhead resistance at $47.19 with high volume.

Traders should now look for long-biased trades in WAGE as long as it's trending above Wednesday's intraday low of $43.89 or above $42.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 386,411 shares. If that breakout materializes soon, then WAGE will set up to re-test or possibly take out its next major overhead resistance levels at $50 to $51, or even its 200-day moving average of $52.19. Any high-volume moves above its 200-day will then give WAGE a chance to tag $55 to $57.

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.