Stock Quotes in this Article: CHE, JNY, OSTK

 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 today.

Jones Group

Jones Group (JNY) designs, markets and wholesales branded apparel, footwear, jeanswear, jewelry and handbags. This stock closed up 4.1% at $16.01 in Monday's trading session.

Monday's Volume: 1.84 million

Three-Month Average Volume: 935,116

Volume % Change: 100%

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From a technical perspective, JNY ripped higher here with above-average volume. This spike is coming after shares of JNY recently sold off from its high of $17 to its intraday low of $15.29. Shares of JNY now look ready to reverse that downtrend and potentially trigger a major breakout trade. That trade will hit if JNY manages to take out some near-term overhead resistance levels at $16.45 to its 52-week high at $17 with high volume.

Traders should now look for long-biased trades in JNY as long as it's trending above Monday's low of $15.29 and then once it sustains a move or close above those breakout levels with volume that hits near or above 935,116 shares. If that breakout triggers soon, then JNY will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23.

Keep in mind that JNY is set to report earnings on July 31 before the market open. I would look to play that breakout ahead of the quarter and then readjust the next breakout levels after earnings if the stock reacts positively to the numbers.

Chemed

Chemed (CHE) operates in the health care as well as the repair and maintenance fields in the U.S. This stock closed up 1.3% at $70.16 in Monday's trading session.

Monday's Volume: 603,000

Three-Month Average Volume: 358,989

Volume % Change: 104%

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From a technical perspective, CHE bounced modestly higher here right above some near-term support at $68.06 with above-average volume. This bounce is coming off oversold levels, since the current relative strength index reading for CHE is 38.28. Oversold can always get more oversold, but it's also a level where a stock can experience a powerful bounce from.

Traders should now look for long-biased trades in CHE as long as it's trending above its recent low of $68.06 and then once it sustains a move or close above its 50-day at $71.30 and its 200-day at $72.32 with volume that's near or above 358,989 shares. If we get that move soon, then CHE will set up to re-test or possibly take out its next major overhead resistance levels at $76 to $77.44. Any high-volume move above $77.44 will then give CHE a chance to re-fill its previous gap-down zone from May that started at $81.78.

Overstock.com

Overstock.com (OSTK) is an online retailer offering closeout and discount brand and non-brand name merchandise, including bed-and-bath goods, home dcor, kitchenware, watches, jewelry, electronics and computers, apparel and designer accessories. This stock closed up 1.9% at $33.42 in Monday's trading session.

Monday's Volume: 804,000

Three-Month Average Volume: 468,798

Volume % Change: 83%

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From a technical perspective, OSTK bounced notably higher here right off some near-term support at $32 with above-average volume. This move is quickly pushing shares of OSTK within range of triggering a major breakout trade. That trade will hit if OSTK manages to take out its 52-week high at $35.60 with high volume.

Traders should now look for long-biased trades in OSTK as long as it's trending above $32 and then once it sustains a move or close above its 52-week high at $35.60 with volume that's near or above 468,798 shares. If that breakout triggers soon, then OSTK will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $40 to $47.

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.