Stock Quotes in this Article: TDS, SPWR, RKUS

MADISON, 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.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."

>>4 Stocks Setting Up to Break Out

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.

With that in mind, let's take a look at several stocks rising on unusual volume today.

>>5 Stocks Trades for S&P 1,700

Ruckus Wireless

Ruckus Wireless (RKUS) provides carrier-class Wi-Fi solutions to service providers and enterprises to solve network capacity and coverage challenges. This stock closed up 4.2% at $13.87 on Friday.

Friday's Volume: 3.41 million

Average Volume: 615,066

Volume % Change: 455%

Shares of RKUS ripped higher on Friday after Goldman Sachs upgraded the stock from neutral to buy.

>>4 Tech Stocks to Trade (or Not)

From a technical perspective, RKUS ripped higher here with massive upside volume. This stock recently gapped down from $19 to $14 and then continued lower to $11.82. Shares of RKUS have now started to rebound off that $11.82 low and are quickly moving within range of triggering a near-term breakout trade, which will hit if RKUS manages to take out some near-term overhead resistance levels at $14.50 to its gap-down day high of $15.50 with high volume.

Traders should now look for long-biased trades in RKUS as long as it's trending above some near-term support at $13.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 615,066 shares. If that breakout triggers soon, then RKUS will set up to re-fill some of its previous gap down zone from earlier this month that started at $19. Some possible upside targets are $16 to $17 if RKUS gets into that gap with volume.

Telephone & Data Systems

Telephone & Data Systems (TDS) is a telecommunications service company with wireless operations. This stock closed up 3% to $23.72 on Friday.

Friday's Volume: 1.58 million

Average Volume: 648,386

Volume % Change: 144%

From a technical perspective, TDS trended higher here right above some key near-term support levels at $23 to $22.50 and closed back above its 200-day moving average at $23.56 with heavy upside volume. This is the first time that TDS has closed above its 200-day since early March.

Traders should now look for long-biased trades in TDS as long as it's trending above $23 or $22.50 and then once it sustains a move or close above its 200-day at $23.56 and then above Friday's intraday high of $24 with volume that hits near or above 648,386 shares. If we get that move soon, then TDS will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $26.

SunPower

SunPower (SPWR) is a vertically integrated solar products and services company that designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial, and utility-scale power plant customers. This stock closed up 5.6% at $21.07 on Friday.

Friday's Volume: 9.57 million

Average Volume: 5.49 million

Volume % Change: 250%

From a technical perspective, SPWR ripped higher here right above some near-term support at $19.50 with heavy upside volume. This stock has been uptrending strong for the last month and change, with shares soaring higher from its low of $9.96 to its recent 52-week high of $22.38. During that move, shares of SPWR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SPWR within range of triggering a near-term breakout trade. That trade will if SPWR manages to take out some near-term overhead resistance levels at $22 to its 52-week high at $22.38 with high volume.

Traders should now look for long-biased trades in SPWR as long as it's trending above some key near-term support levels at $19.50 or above $19 and then once it sustains a move or close above those breakout levels with volume that hits near or above 5.49 million shares. If that breakout triggers soon, then SPWR will set up to enter new 52-week-high territory above $22.38, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $30, or even north of $30.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Madison, Wis.

RELATED LINKS:

>>5 Stocks Under $10 Set to Soar
>>5 Toxic Stocks to Sell in May and Go Away

>>5 Dividend Stocks That Want to Pay You More

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, 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.