Stock Quotes in this Article: GDOT, WBAI, ZU

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.

500.com

500.com (WBAI) provides online sports lottery services in the People's Republic of China. This stock closed up 1.9% to $37.05 in Wednesday's trading session.

Wednesday's Volume: 722,000

Three-Month Average Volume: 438,698

Volume % Change: 80%

From a technical perspective, WBAI jumped modestly higher here with above-average volume. This move higher on Wednesday is starting to push shares of WBAI within range of triggering a big breakout trade. That trade will hit if WBAI manages to take out Wednesday's intraday high of $37.89 to some more key overhead resistance levels at $38.50 to $38.75 with high volume.

Traders should now look for long-biased trades in WBAI as long as it's trending above Wednesday's low of $36.10 or above $35 and then once it sustains a move or close above those breakout levels with volume that hits near or above 438,698 shares. If that breakout kicks off soon, then WBAI will set up to re-test or possibly take out its next major overhead resistance levels at $41.09 to $44, or even $46.

Green Dot

Green Dot (GDOT), together with its subsidiaries, operates as a technology-centric, pro-consumer bank holding company that provides personal banking for the masses. This stock closed up 3.1% to $19.65 in Wednesday's trading session.

Wednesday's Volume: 1.57 million

Three-Month Average Volume: 458,480

Volume % Change: 217%

From a technical perspective, GDOT trended higher here right above its 50-day moving average of $18.21 with above-average volume. This spike higher on Wednesday is quickly pushing shares of GDOT within range of triggering a near-term breakout trade. That trade will hit if GDOT manages to take out some near-term overhead resistance levels at $19.82 to $20.32 with high volume.

Traders should now look for long-biased trades in GDOT as long as it's trending above Wednesday's low at $18.71 or above its 50-day at $18.21 and then once it sustains a move or close above those breakout levels with volume that hits near or above 458,480 shares. If that breakout triggers soon, then GDOT will set up to re-test or possibly take out its next major overhead resistance levels at $20.32 to $21.70. Any high-volume move above those levels will then give GDOT a chance to tag its next major overhead resistance level at $23.30.

Zulily

Zulily (ZU) operates as an online retailer. This stock closed up 9.1% at $39.88 in Wednesday's trading session.

Wednesday's Volume: 2.14 million

Three-Month Average Volume: 1.28 million

Volume % Change: 65%

From a technical perspective, ZU spiked sharply higher here right off its 50-day moving average of $38.49 with above-average volume. This move briefly pushed shares of ZU into breakout territory, since the stock flirted with some near-term overhead resistance at $39.50. This spike higher on Wednesday also pushed shares of ZU into its previous gap-down-day zone from May that started at $50.38. Market players should now look for a continuation move to the upside if ZU manages to take out Wednesday's intraday high of $40.58 with high volume.

Traders should now look for long-biased trades in ZU as long as it's trending above Wednesday's low of $38.46 or above $37 and then once it sustains a move or close above $40.58 with volume that hits near or above 1.28 million shares. If that move gets underway soon, then ZU will set up to re-fill some more of its previous gap-down-day zone from May that started at $50.38.

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.