Stock Quotes in this Article: VIPS, PAMT, RKUS, PSMI

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.

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by “superinvestors.”

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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.

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

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Ruckus Wireless

Ruckus Wireless (RKUS) provides carrier-class Wi-Fi solutions to service providers and enterprises to solve network capacity and coverage challenges. Its products include gateways, controllers and access points such as Smart Radio, Smart QoS and Smart Mesh. This stock is trading up 8% to $21.22 in recent trading.

Today’s Volume: 737,000

Average Volume: 586,332

Volume % Change: 127%

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From a technical perspective, RKUS is soaring higher here with above-average volume. This move is quickly pushing shares of RKUS within range of triggering a near-term breakout trade. That trade will hit if RKUS manages to take out its 50-day moving average of $21.91 with high volume.

Traders should now look for long-biased trades in RKUS as long as it’s trending above $20, and then once it sustains a move or close above its 50-day at $21.91 with volume that hits near or above 586,332 shares. If that breakout hits soon, then RKUS will set up to re-test or possibly take out its next major overhead resistance levels at $23 to $24. Any high-volume move above $24 will then give RKUS a chance to re-fill its previous gap down zone from earlier this month that started near $26.50.

Vipshop

Vipshop (VIPS) offers high-quality branded products to consumers in China through flash sales on its vipshop.com Web site. This stock is trading up 3.7% at $25.34 in recent trading.

Today’s Volume: 514,000

Average Volume: 180,971

Volume % Change: 456%

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From a technical perspective, VIPS is ripping higher here right above some near-term support at $22 with above-average volume. This stock has been uptrending strong for the last six months, with shares soaring higher from its low near $6 to its recent high of $27.22. During that move, shares of VIPS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now started to push VIPS within range of triggering a major breakout trade. That trade will hit if VIPS manages to clear its 52-week high of $27.22 with high volume.

Traders should now look for long-biased trades in VIPS as long as it’s trending above today’s low of $24.15, and then once it sustains a move or close above $27.22 with volume that hits near or above 180,971 shares. If that breakout triggers soon, then VIPS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $33 in the near future.

Peregrine Semiconductor

Peregrine Semiconductor (PSMI), a fabless provider of high-performance radio frequency integrated circuits, is trading up 5.8% at $10.03 in recent trading.

Today’s Volume: 396,000

Average Volume: 157,418

Volume % Change: 279%

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From a technical perspective, PSMI is soaring higher here right above some near-term support at $9 with above-average volume. This move has also started to push shares of PSMI into breakout territory, since the stock has cleared some near-term overhead resistance levels at $9.73 to around $10. At last check, PSMI has hit an intraday high of $10.24 and volume is well above its three-month average action of 157,418 shares.

Traders should now look for long-biased trades in PSMI as long as it’s trending above today’s low of $9.58, and then once it sustains a move or close above those breakout levels with volume that hits near or above 157,418 shares. If PSMI can maintain that trend, then this stock will set up to re-fill its previous gap down zone from earlier this month that started just above $11. Some possible upside targets could also be $12 to $13 if that gap gets filled with heavy volume.

Parametric Sound

Parametric Sound (PAMT) is a sound technology company focused on delivering directed parametric sound solutions to customers primarily in digital signage, point-of-purchase, in-store networks and related markets. This stock is trading up 3.9% at $10.91 in recent trading.

Today’s Volume: 356,000

Average Volume: 81,857

Volume % Change: 601%

From a technical perspective, PAMT is trending higher here with above-average volume. This move has started to push shares of PAMT into breakout territory, since the stock has taken out some near-term overhead resistance at $10.82. At last check, PAMT has hit an intraday high of $11.40 and volume is well above its three-month average action of 81,857 shares. Shares of PAMT are now quickly moving within range of triggering an even bigger breakout trade. That trade will hit if PAMT manages to clear its all-time high of $11.74 with high volume.

Traders should now look for long-biased trades in PAMT as long as it’s trending above today’s low of $10.50, and then once it sustains a move or close above $11.74 with volume that hits near or above 81,857 shares. If that breakout hits soon, then PAMT 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 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.