Stock Quotes in this Article: CIMT, DOV, UEPS, UVE

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.

Universal Insurance (UVE), through its subsidiaries, operates as a property and casualty insurance company performing various aspects of insurance underwriting, distribution and claims. This stock closed up 7.7% to $14.39 in Monday's trading session.

Monday's Volume: 1.88 million

Three-Month Average Volume: 610,912

Volume % Change: 266%

From a technical perspective, UVE ripped sharply higher here and broke out above some past overhead resistance levels at $13.09 to $13.97 with strong upside volume. This stock has been uptrending for the last month, with shares moving higher from its low of $9.63 to its intraday high of $14.39. During that uptrend, shares of UVE have been consistently making higher lows and higher highs, which is bullish technical price action. This spike on Monday is quickly pushing shares of UVE within range of triggering another big breakout trade. That trade will hit if UVE manages to take out Monday's high of $14.39 to its 52-week high of $14.83 with high volume.

Traders should now look for long-biased trades in UVE as long as it's trending above Monday's low of $13.12 or above $13 and then once it sustains a move or close above those breakout levels with volume that hits near or above 610,912 shares. If that breakout hits soon, then UVE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $17 to $18.

Dover (DOV) and its subsidiaries manufacture and sell a range of equipment and components, specialty systems, and support services. This stock closed up 1.1% at $79.10 in Monday's trading session.

Monday's Volume: 3.06 million

Three-Month Average Volume: 1.20 million

Volume % Change: 185%

From a technical perspective, DOV rose modestly higher here right above its 50-day moving average of $75.69 with above-average volume. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $67.76 to its intraday high of $79.83. During that move, shares of DOV have been consistently making higher lows and higher highs, which is bullish technical price action. This spike higher on Monday is now quickly pushing shares of DOV within range of triggering a big breakout trade. That trade will hit if DOV manages to take out some near-term overhead resistance levels at $80 to $80.19 and then once it clears more resistance at $80.46 with high volume.

Traders should now look for long-biased trades in DOV as long as it's trending above Monday's low of $77.63 or above its 50-day at $75.69 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.20 million shares. If that breakout hits soon, then DOV will set up to tag $85 to $90.

Net 1 Ueps Technologies (UEPS) provides payment solutions and transaction processing services for various industries in South Africa, Korea, Europe and internationally. This stock closed up 3.4% to $10.22 in Monday's trading session.

Monday's Volume: 303,000

Three-Month Average Volume: 156,003

Volume % Change: 155%

From a technical perspective, UEPS trended higher here right above its 200-day moving average of $9.23 with above-average volume. This move briefly pushed shares of UEPS into breakout territory, after the stock flirted with some near-term overhead resistance levels at $10.19 to $10.24. Shares of UEPS closed right around those levels at $10.24, after hitting an intraday high of $10.45. Market players should now look for a continuation move higher in the short-term if UEPS manages to take out Monday's high of $10.45 with strong volume.

Traders should now look for long-biased trades in UEPS as long as it's trending above its 200-day at $9.23 and then once it sustains a move or close above those Monday's intraday high of $10.45 with volume that hits near or above 156,003 shares. If we get that move soon, then UEPS will set up to re-fill some of its previous gap-down-day zone from last November that started at $11.50. Any high-volume move above $11.50 will then give UEPS a chance to tag $12 to $12.65.

Cimatron (CIMT), together with its subsidiaries, designs, develops, manufactures, markets and supports computer-aided design/computer aided manufacturing software products. This stock closed up 4.1% at $10.11 in Monday's trading session.

Monday's Volume: 535,000

Three-Month Average Volume: 295,582

Volume % Change: 85%

From a technical perspective, CIMT jumped higher here right above its 50-day moving average of $9.14 with above-average volume. This move pushed shares of CIMT into breakout territory, since the stock took out some near-term overhead resistance at $9.80. Shares of CIMT are now quickly moving within range of triggering an even bigger breakout trade. That trade will hit if CIMT manages to take out Monday's high of $10.28 to its 52-week high at $10.36 with high volume.

Traders should now look for long-biased trades in CIMT as long as it's trending above its 50-day at $9.14 and then once it sustains a move or close above those breakout levels with volume that this near or above 295,582 shares. If that breakout materializes soon, then CIMT will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $13 to $15.

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.