Stock Quotes in this Article: CAKE, NILE, XPO, XOOM, TOWR

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.

Tower International

Tower International (TOWR) is a manufacturer of engineered structural metal components and assemblies primarily serving automotive OEMs. This stock closed up 3.5% at $21.70 in Monday's trading session.

Monday's Volume: 563,000

Three-Month Average Volume: 221,286

Volume % Change: 245%

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From a technical perspective, TOWR bounced notably higher here right above its 50-day moving average of $20.03 with above-average volume. Despite a high-volume down day last week, shares of TOWR are still trending within range of triggering a near-term breakout trade. That trade will hit if TOWR manages to take out some near-term overhead resistance levels at $22.50 to its 52-week high at $23.93 with high volume.

Traders should now look for long-biased trades in TOWR as long as it's trending above its 50-day at $20.03 or above more near-term support at $19.10 and then once it sustains a move or close above those breakout levels with volume that hits near or above 221,286 shares. If that breakout triggers soon, then TOWR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $27 to $30.

Cheesecake Factory

Cheesecake Factory (CAKE) operates 162 upscale, full-service casual dining restaurants under The Cheesecake Factory, Grand Lux Cafe and RockSugar Pan Asian Kitchen brands. This stock closed up 1.4% at $41.39 in Monday's trading session.

Monday's Volume: 1.31 million

Three-Month Average Volume: 617,600

Volume % Change: 107%

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From a technical perspective, CAKE bounced modestly higher here right above some near-term support at $39.86 with above-average volume. This stock recently pulled back sharply from its high of $44.79 to its low of $39.86 with heavy downside volume flows. Shares of CAKE have now started to rebound off modestly oversold levels, since its current relative strength index reading is 40.39. That rebound is starting to push shares of CAKE within range of triggering a near-term breakout trade. That trade will hit if CAKE manages to take out its 50-day moving average at $41.75 with high volume.

Traders should now look for long-biased trades in CAKE as long as it's trending above support at $39.86 and then once it sustains a move or close above its 50-day at $41.75 with volume that's near or above 617,600 shares. If that breakout hits soon, then CAKE will set up to re-test or possibly take out its next major overhead resistance levels at $44 to its 52-week high at $44.79. Any high-volume move above $44.79 will then put $50 into range for shares of CAKE.

XPO Logistics

XPO Logistics (XPO) is a non-asset-based transportation services provider that acts as a middleman between shippers and carriers who outsource their transportation logistics. This stock closed up 2.4% at $24.68 in Monday's trading session.

Monday's Volume: 473,000

Three-Month Average Volume: 219,721

Volume % Change: 127%

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From a technical perspective, XPO spiked notably higher here and broke out above its previous 52-week high at $24.68 with above-average volume. This stock has been on fire for the last two months, with shares soaring higher from its low of $16.29 to its intraday high of $25.29. During that move, shares of XPO have been consistently making higher lows and higher highs, which is bullish technical price action.

Traders should now look for long-biased trades in XPO as long as it's trending above some near-term support at $23, and then once it sustains a move or close above its new 52-week high at $25.29 with volume that's near or above 219,721 shares. If we get that move soon, then XPO will set up to enter new 52- week-high territory, which is bullish technical price action. Some possible upside targets off that move are $30 to $35.

Keep in mind that XPO is set to report earnings on July 30 after the market close. Look to play this breakout after earnings out, once you know the stock is reacting positively to the numbers.

Xoom

Xoom (XOOM) provides online consumer-to-consumer international money transfers in close to 30 countries. This stock closed up 1.9% at $35.27 in Monday's trading session.

Monday's Volume: 438,000

Three-Month Average Volume: 161,563

Volume % Change: 142%

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From a technical perspective, XOOM trended higher here right off some near-term support at $34 with heavy upside volume. This move pushed shares of XOOM into breakout and new all-time-high territory, since the stock took out some near-term overhead resistance at $35.05. At last check, XOOM hit an intraday high of $36.46 and volume was well above its three-month average action of 161,563 shares.

Traders should now look for long-biased trades in XOOM as long as it's trending above $34 and then once it sustains a move or close above Monday's high of $36.46 with volume that's near or above 161,563 shares. If we get that move soon, then XOOM will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $40 to $45.

Blue Nile

Blue Nile (NILE) is an online retailer of diamonds and jewelry. Its merchandise consists of diamonds and fine jewelry, with a particular focus on engagement diamonds and settings. This stock closed up 3.7% at $39.44 in Monday's trading session.

Monday's Volume: 180,000

Three-Month Average Volume: 163,613

Volume % Change: 50%

From a technical perspective, NILE surged higher here right above its 50-day moving average of $37.20 with above-average volume. This move is quickly pushing NILE within range of triggering a major breakout trade. That trade will hit if NILE manages to take out some near-term overhead resistance levels at $40 to $40.44 with high volume.

Traders should now look for long-biased trades in NILE as long as it's trending above its 50-day at $37.20 and then once it sustains a move or close above those breakout levels with volume that's near or above 163,613 shares. If that breakout triggers soon, then NILE will set up to re-test or possibly take out its 52-week high at $43.54. Any high-volume move above $43.54 to $45 will then give NILE a chance to tag $50 to $55.

Keep in mind that NILE is set to report earnings on Aug. 1 before the market open. Look to play this breakout after the quarter, once you know that NILE is uptrending and reacting positively to the numbers.

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.