Stock Quotes in this Article: D, IMOS, PWRD, NGVC

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.

>>5 Stocks Ready to Break Out

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.

>>5 Stocks Under $10 Set to Soar

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

ChipMOS Technologies

ChipMOS Technologies (IMOS) is a provider of semiconductor testing and assembly services. This stock closed up 6.5% at $17.33 in Friday's trading session.

Friday's Volume: 453,000

Three-Month Average Volume: 337,888

Volume % Change: 85%

>>5 Stocks Warren Buffett Is Buying in 2013

From a technical perspective, IMOS jumped sharply higher here right above some near-term support at $15.85 with decent upside volume. This move is quickly pushing shares of IMOS within range of triggering a major breakout trade. That trade will hit if IMOS manages to take out some near-term overhead resistance levels at its 50-day moving average of $17.48 to more resistance at $17.84 with high volume.

Traders should now look for long-biased trades in IMOS as long as it's trending above some key near-term support levels at $15.85 or $15 and then once it sustains a move or close above those breakout levels with volume that's near or above 337,888 shares. If that breakout triggers soon, then IMOS will set up to re-test or possibly take out its next major overhead resistance levels at $19.28 to its 52-week high at $20.69.

Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage (NGVC) is a specialty retailer of natural and organic groceries and dietary supplements. This stock closed up 6.6% at $37.66 in Friday's trading session.

Friday's Volume: 170,000

Three-Month Average Volume: 122,962

Volume % Change: 75%

>>5 Stocks Under $10 Hedge Funds Love

From a technical perspective, NGVC soared higher here right above its 50-day moving average of $34.66 with decent upside volume. This move is quickly pushing shares of NGVC within range of triggering a major breakout trade. That trade will hit if NGVC manages to take out some near-term overhead resistance levels at $37.99 to its all-time high at $39.46 with high volume.

Traders should now look for long-biased trades in NGVC as long as it's trending above its 50-day at $34.66 and then once it sustains a move or close above those breakout levels with volume that's near or above 122,962 shares. If that breakout hits soon, then NGVC will set up to enter new all-time high territory, which is bullish technical price action. Some possible upside targets off that move are $45 to $50.

Perfect World

Perfect World (PWRD) is an online game developer and operator in China. This stock closed up 6.4% at $20.23 in Friday's trading session.

Friday's Volume: 918,000

Three-Month Average Volume: 857,339

Volume % Change: 60%

>>5 Big Trades You Can't Miss

From a technical perspective, PWRD spiked sharply higher here back above its 50-day moving average of $19.33 and right above some near-term support at $18.50 with decent upside volume. This move is quickly pushing shares of PWRD within range of triggering a major breakout trade. That trade will hit if PWRD manages to take out some near-term overhead resistance levels at $21.41 to its 52-week high at $22.82 with high volume.

Traders should now look for long-biased trades in PWRD as long as it's trending above its 50-day at $19.33 or above more near-term support at $18.50 and then once it sustains a move or close above those breakout levels with volume that's near or above 857,339 shares. If that breakout hits soon, then PWRD will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are its next major overhead resistance levels at $26.01 to $27.93.

Dominion Resources

Dominion Resources (D) is a producer and transporter of energy. This stock closed up 1.9% at $58.86 in Friday's trading session.

Friday's Volume: 7.67 million

Three-Month Average Volume: 3.05 million

Volume % Change: 182%

>>5 Toxic Stocks You Should Sell

From a technical perspective, D jumped modestly higher here back above its 50-day moving average of $58.11 with strong upside volume. This stock recently formed a near-term double top at $60.38 to $60.44 and then sold off to its recent low of $57.03. That pullback was met with strong upside volume flows as shares of D are now trending back above its 50-day at $58.11.

Traders should now look for long-biased trades in D as long as it's trending above its 50-day at $58.11 or above that recent low of $57.03 and then once it sustains a move or close above Friday's high of $58.99 with volume that's near or above 3.05 million shares. If we get that move soon, then D will set up to re-test or possibly take out its double top area at $60.44. Any high-volume move above that level will then give D a chance to re-test its 52-week high at $61.85. Shares of D could easily trend toward $63 to $65 if we see a move above its 52-week high soon.

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.


RELATED LINKS:







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 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.