Stock Quotes in this Article: AXS, ENH, NTES, VIPS

WINDERMERE, Fla. (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.

Axis Capital (AXS)

This company provides a range of insurance and reinsurance products to insureds and reinsureds worldwide operations with main locations in Bermuda, the United States and Europe. This stock is trading up 2.2% at $35.86 in recent trading.

Today's Volume: 1.23 million

Average Volume: 672,189

Volume % Change: 228%

Shares of AXS are moving higher today after a Wells Fargo analyst said the acquisition of Alterra, which is based in Bermuda, should boost the share prices of other Bermuda based companies that are trading significantly below their book values. Allied World (AHW), AXIS Capital (AXS), Endurance Specialty (ENH), Montpelier Re (MRH), Platinum Underwriters (PTP), and Validus (VR) are examples of such companies, the analyst said.

From a technical perspective, AXS is bouncing higher here right above some near-term support at $34.91 with above-average volume. This move is quickly pushing AXS within range of triggering a near-term breakout trade. That trade will hit once AXS takes out some near-term overhead resistance at $36.46 with high volume. At last check, AXS has hit an intraday high of $36.61 and volume is well above its three-month average action of 672,189 shares.

Traders should now look for long-biased trades in AXS as long as it's trending above its $34.91, and then once it sustains a move or close above $36.46 to $36.61 with volume that hits near or above 672,189 shares. If that breakout triggers soon, then AXS will set up to re-test or possibly take out its next major overhead resistance level at $38.80.

Endurance Specialty (ENH)

This company provides property and casualty insurance and reinsurance on a worldwide basis. This stock is trading up 3.4% at $40.87 in recent trading.

Today's Volume: 582,000

Average Volume: 295,982

Volume % Change: 211%

Shares of ENH are trending higher today after a Wells Fargo analyst said the acquisition of Alterra, which is based in Bermuda, should boost the share prices of other Bermuda based companies that are trading significantly below their book values. Allied World, AXIS Capital, Endurance Specialty, Montpelier Re, Platinum Underwriters, and Validus are examples of such companies, the analyst said.

From a technical perspective, ENH is ripping higher here back above its 50-day moving average of $40.08 with above-average volume. This move is quickly pushing ENH within range of triggering a major breakout trade. That trade will hit once ENH takes out some near-term overhead resistance at $42 to $42.82 with high volume.

Traders should now look for long-biased trades in ENH as long as it's trending above its 50-day at $40.08, and then once it sustains a move or close above those breakout levels with volume that hits near or above 295,982 shares. If that breakout hits soon, then ENH will set up to re-test or possibly take out its next major overhead resistance levels at $46 to $48.

NetEase (NTES)

This is a China-based Internet technology company, which is engaged in the development of applications, services and other technologies for the Internet in China. This stock is trading up 6.2% at $41.96 in recent trading.

Today's Volume: 1.57 million

Average Volume: 970,056

Volume % Change: 170%

From a technical perspective, NTES is ripping higher here right above some near-term support levels at $38 to $37 with above-average volume. This stock has been downtrending badly for the last two months, with shares dropping from a high of $56.89 to its recent low of $37. During that move, shares of NTES have been mostly making lower highs and lower lows, which is bearish technical price action. That said, NTES has now started to bounce off that $37 low and move within range of triggering a near-term breakout trade. That trade will hit once NTES manages to take out some near-term overhead resistance at $44 with high volume.

Traders should now look for long-biased trades in NTES as long as it's trending above today's low of $39.40, and then once it sustains a move or close above $44 with volume that hits near or above 970,056 shares. If that breakout triggers soon, then NTES will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day of $47.89 to $50.

Vipshop Holdings (VIPS)

This company offers high-quality branded products to consumers in China through flash sales on its vipshop.com website. This stock is trading up 8% at $15.73 in recent trading.

Today's Volume: 248,000

Average Volume: 113,413

Volume % Change: 345%

From a technical perspective, VIPS is soaring here right off some near-term support at $14.25 with above-average volume. This move has started to push VIPS into breakout territory, since the stock is trading well above some near-term overhead resistance levels at $14.25 to $15. This stock has been uptrending strongly for the last four months, with shares soaring from a low of $4.76 to its recent high of $15.75. During that move, shares of VIPS have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in VIPS as long as it's trending above those breakout levels of $14.25 to $15 with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 113,413 shares as bullish. If VIPS can maintain that trend, then this stock has a great chance of tagging $20 in the near future.

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

-- Written by Roberto Pedone in Winderemere, Fla.

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

Roberto Pedone, based out of Windermere, Fla., 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.