Stock Quotes in this Article: AEIS, GOGO, NMBL

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.

Gogo

Gogo (GOGO) provides in-flight Internet connectivity and wireless in-cabin digital entertainment solutions in the U.S. and internationally. This stock closed up 6.2% at $12.67 in Monday's trading session.

Monday's Volume: 9.31 million

Three-Month Average Volume: 3.39 million

Volume % Change: 162%

From a technical perspective, GOGO spiked sharply higher here right above its recent low of $11.66 with heavy upside volume. This stock has been downtrending badly for the last six months, with shares moving lower from over $34 to its recent low or $11.66. During that move, shares of GOGO have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of GOGO are now starting to spike higher off that $11.66 low and it's quickly moving within range of triggering near-term breakout trade. That trade will hit if GOGO manages to take out Monday's intraday high of $13.20 to some more near-term overhead resistance at $14.08 with high volume.

Traders should now look for long-biased trades in GOGO as long as it's trending above Monday's low of $12.36 or above that recent low of $11.66 and then once it sustains a move or close above those breakout levels with volume that this near or above 3.39 million shares. If that move kicks off soon, then GOGO will set up to re-test or possibly take out its gap-down-day high of $15.46. Any high-volume move above $15.46 will then give GOGO a chance to re-fill some of that gap that started just above $18.

Nimble Storage

Nimble Storage (NMBL) provides flash-optimized hybrid storage platform. This stock closed up 11.6% at $22.98 in Monday's trading session.

Monday's Volume: 1.37 million

Three-Month Average Volume: 475,817

Volume % Change: 244%

From a technical perspective, NMBL gapped sharply higher here right above its all-time low of $19.17 with strong upside volume flows. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $58 to its recent low of $19.17. During that downtrend, shares of NMBL have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of NMBL are now spiking higher off its 52-week low with strong upside volume. Market players should now look for a continuation move higher in the short-term if NMBL manages to take out Monday's intraday high of $24.18 to more resistance at $25 with high volume.

Traders should now look for long-biased trades in NMBL as long as it's trending above Monday's low of $21.77 or above $20 and then once it sustains a move or close above $24.18 to $25 with volume that hits near or above 475,817 shares. If that move starts soon, then NMBL will set up to re-test or possibly take out its next major overhead resistance levels at $27.50 to $30.

Advanced Energy Industries

Monolithic Power Systems (AEIS), together with its subsidiaries, designs, manufactures, sells and supports power conversion products that transform power into various usable forms. This stock closed up 7% at $18.65 in Monday's trading session.

Monday's Volume: 1.17 million

Three-Month Average Volume: 498,284

Volume % Change: 142%

From a technical perspective, AEIS ripped sharply higher here right above its recent low of $16.75 with strong upside volume. This stock has been downtrending badly for the last two months and change, with shares moving lower from its high of $29.15 to its recent low of $16.75. During that downtrend, shares of AEIS have been consistently making lower highs and lower lows, which is bearish technical price action. Shares of AEIS also recently gapped down sharply from over $21 to $16.75 with heavy downside volume. That said, shares of AEIS are now starting to rebound off that $16.75 low and it's quickly moving within range of triggering a major breakout trade. That trade will hit if AEIS manages to take out Monday's intraday high of $18.83 to its gap-down-day high of $19.22 with high volume.

Traders should now look for long-biased trades in AEIS as long as it's trending above Monday's low of $17.58 or above that recent low of $16.75 and then once it sustains a move or close above those breakout levels with volume that hits near or above 498,284 shares. If that breakout starts soon, then AEIS will set up to re-fill some of its previous gap-down-day zone that started just above $21.

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.