Stock Quotes in this Article: ARUN, DF, LJPC, PRSC, RKUS

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.

Aruba Networks

Aruba Networks (ARUN) provides enterprise mobility solutions worldwide. This stock closed up 7.1% to $17.46 in Friday's trading session.

Friday's Volume: 4.43 million

Three-Month Average Volume: 2.03 million

Volume % Change: 114%

From a technical perspective, ARUN soared higher here right above some near-term support at $16.05 with above-average volume. This stock has been downtrending badly for the last four months and change, with shares moving lower from its high of around $24 to its low of $16.05. During that move, shares of ARUN have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of ARUN are now starting to rebound off that $16.05 low and it's quickly moving within range of triggering a near-term breakout trade. That trade will hit if ARUN manages to take out some near-term overhead resistance levels at $17.85 to $18.04 and then once it clears its 50-day moving average of $18.12 with high volume.

Traders should now look for long-biased trades in ARUN as long as it's trending above Friday's intraday low of $16.25 or above that recent low of $16.05 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.03 million shares. If that breakout hits soon, then ARUN will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $18.81 to $19.05. Any high-volume move above $19.05 will then give ARUN a chance to re-fill some of its previous gap-down-day zone from May that started at $20.24.

La Jolla Pharmaceuticals

La Jolla Pharmaceuticals (LJPC), a biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics for chronic organ failure and cancer. This stock closed up 18.9% at $10.65 in Friday's trading session.

Friday's Volume: 1.04 million

Three-Month Average Volume: 127,479

Volume % Change: 944%

From a technical perspective, LJPC exploded higher here and broke out above some near-term overhead resistance levels at $9.40 to $9.85 with monster upside volume. This large move to the upside on Friday is quickly pushing shares of LJPC within range of triggering another major breakout trade. That trade will hit if LJPC manages to take out some key past overhead resistance levels at $11.74 to $12.08 with high volume.

Traders should now look for long-biased trades in LJPC as long as it's trending above $9.40 or above $9 and then once it sustains a move or close above those breakout levels with volume that hits near or above 127,479 shares. If that breakout materializes soon, then LJPC will set up to re-test or possibly take out its next major overhead resistance levels at $13 to $14, or even $15.

Dean Foods

Dean Foods (DF), a food and beverage company, processes and distributes milk and other fluid dairy products in the U.S. This stock closed up 4.5% to $17.46 in Friday's trading session.

Friday's Volume: 5.33 million

Three-Month Average Volume: 2.69 million

Volume % Change: 114%

From a technical perspective, DF ripped higher here right off its 50-day moving average of $16.78 with strong upside volume flows. This spike to the upside on Friday is quickly pushing shares of DF within range of triggering a major breakout trade. That trade will hit if DF manages to take out Friday's intraday high of $17.50 to some more key overhead resistance levels at $18.06 to $18.24 with high volume.

Traders should now look for long-biased trades in DF as long as it's trending above Friday's intraday low of $16.85 or above some more key near-term support at $16.61 and then once it sustains a move or close above those breakout levels with volume that hits near or above 2.69 million shares. If that breakout triggers soon, then DF will set up to re-test or possibly take out its next major overhead resistance levels at $19.70 to $21. Any high-volume move above $21 will then give DF a chance to re-fill some of its previous gap-down-day zone from August of 2013 that started at $22.75.

Providence Service

Providence Service (PRSC) provides and manages government sponsored human services and non-emergency transportation services. This stock closed up 3.1% at $37.64 in Friday's trading session.

Friday's Volume: 215,000

Three-Month Average Volume: 95,237

Volume % Change: 138%

From a technical perspective, PRSC bounced notably higher here right above some near-term support at $35.70 with above-average volume. This stock recently formed a triple bottom chart pattern at $35.99, $36.22 and $35.70. Following that bottom, shares of PRSC have started to bounce higher and this stock is now approaching a near-term breakout trade. That trade will hit if PRSC manages to take out Friday's intraday high of $37.89 to its 50-day moving average of $38.37 with high volume.

Traders should now look for long-biased trades in PRSC as long as it's trending above Friday's intraday low of $36.16 or above more near-term support at $35.70 and then once it sustains a move or close above those breakout levels with volume that this near or above 95,237 shares. If that move gets started soon, then PRSC will set up to re-test or possibly take out its next major overhead resistance levels at $40.16 to $41.25. Any high-volume move above those levels will then give PRSC a chance to tag its 52-week high at $43.35.

Ruckus Wireless

Ruckus Wireless (RKUS) provides carrier-class Wi-Fi solutions to service providers and enterprises worldwide. This stock closed up 7.9% to $11.88 in Friday's trading session.

Friday's Volume: 3.39 million

Three-Month Average Volume: 1.54 million

Volume % Change: 114%

From a technical perspective, RKUS ripped higher here right above its 50-day moving average of $10.71 with above-average volume. This sharp spike higher on Friday is quickly pushing shares of RKUS within range of triggering a major breakout trade. That trade will hit if RKUS manages to take out Friday's intraday high of $11.95 to some more key overhead resistance levels at $12.18 to $12.48 with high volume.

Traders should now look for long-biased trades in RKUS as long as it's trending above Friday's intraday low of $10.95 or above its 50-day at $10.71 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.54 million shares. If that breakout hits soon, the RKUS will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $13.05 to $14.14.

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.