Stock Quotes in this Article: CECE, DCO, GGG, KS

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 today.

Ducommun

Ducommun (DCO) provides engineering and manufacturing services mainly to the aerospace and defense industry through a wide spectrum of electronic and structural applications. This stock closed up 3.9% at $28.68 in Monday's trading session.

Monday's Volume: 229,000

Three-Month Average Volume: 86,853

Volume % Change: 174%

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From a technical perspective, DCO jumped higher here right above its 50-day moving average of $26.30 with above-average volume. This stock has been trending sideways inside of a consolidation pattern for the last two months, with shares moving between $25.91 on the downside and $29.37 on the upside. Shares of DCO are now quickly moving within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern. That breakout will hit if DCO manages to take out Monday's high of $29.31 and then once it clears its 52-week high at $29.37 with high volume.

Traders should now look for long-biased trades in DCO as long as it's trending above Monday's low of $27.50 or above its 50-day at $26.30 and then once it sustains a move or close above those breakout levels with volume that this near or above 86,853 shares. If that breakout hits soon, then DCO will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $33 to $35.

KapStone Paper and Packaging

KapStone Paper and Packaging (KS) produces and sells a variety of unbleached kraft paper, linerboard, folding carton board, saturating kraft, inflatable dunnage bags and dimensional lumber. This stock closed up 1.3% at $42.80 in Monday's trading session.

Monday's Volume: 812,000

Three-Month Average Volume: 349,045

Volume % Change: 136%

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From a technical perspective, KS spiked modestly higher here right above some near-term support at $40 with above-average volume. This move is quickly pushing shares of KS within range of triggering a near-term breakout trade. That trade will hit if KS manages to take out some near-term overhead resistance levels at its 50-day moving average of $43.73 to more resistance at $44.16 with high volume.

Traders should now look for long-biased trades in KS as long as it's trending above some near-term support at $40 and then once it sustains a move or close above those breakout levels with volume that's near or above 349,045 shares. If that breakout hits soon, then KS will set up to re-test or possibly take out its next major overhead resistance levels at $46 to its 52-week high at $50.10.

Graco

Graco (GGG) designs, manufactures and sells equipment that pumps, meters, mixes, dispenses and sprays a wide variety of fluids and semi-solids. This stock closed up 0.9% at $74.06 in Monday's trading session.

Monday's Volume: 281,000

Three-Month Average Volume: 180,217

Volume % Change: 75%

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From a technical perspective, GGG rose modestly higher here right above its 50-day moving average of $71.66 with above-average volume. This move is quickly pushing shares of GGG within range of triggering a big breakout trade. That trade will hit if GGG manages to take out some near-term overhead resistance levels at $74.57 to its 52-week high at $74.70 with high volume.

Traders should now look for long-biased trades in GGG as long as it's trending above its 50-day at $71.66 and then once it sustains a move or close above those breakout levels with volume that's near or above 180,217 shares. If that breakout hits soon, then GGG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $83.

Ceco Environment

Ceco Environment (CECE) provides an array of solutions for industrial ventilation and air quality problems through dust, mist and fume control systems and particle and chemical technologies to industrial and commercial customers. This stock closed up 6.8% to $14.08 in Monday's trading session.

Monday's Volume: 297,000

Three-Month Average Volume: 107,248

Volume % Change: 165%

From a technical perspective, CECE skyrocketed higher here right off its 50-day moving average of $13.03 with strong upside volume. This move pushed shares of CECE into breakout territory, since it took out some near-term overhead resistance levels at $13.45 to $13.73. Shares of CECE are now moving within range of triggering another big breakout trade. That trade will hit if CECE manages to clear some key resistance levels at $14.21 to its 52-week high at $14.32 with high volume.

Traders should now look for long-biased trades in CECE as long as it's trending above its 50-day at $13.03 and then once it sustains a move or close above those breakout levels with volume that hits near or above 107,248 shares. If we get that breakout soon, then CECE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $17 to $20.

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.