Stock Quotes in this Article: CVLT, N, QIHU, FB, DWRE

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. Many times when above average volume moves into 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.

Facebook

Social networking stock Facebook (FB) is trading up 5.4% at $20.48 in recent trading.

Today’s Volume: 62.6 million

Average Volume: 36.4 million

Volume % Change: 257%

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From a technical perspective, FB is gapping up sharply here with monster volume. This move has pushed FB into breakout territory, since the stock has taken out some near-term overhead resistance at $19.98.

Traders should now look for long-biased trades in FB as long as it’s trending above $19.98 with strong upside volume flows. I would consider any upside volume day that registers near or above 36.4 million shares as bullish. If FB can hold that trend, then this stock has a great chance of re-testing or possibly taking out its next significant overhead resistance levels at $22.45 to $23.42.

Facebook was also featured recently in "3 Tech Stocks to Trade (or Not)."

Demandware

Demandware (DWRE) is a provider of software-as-a-service e-commerce solutions that enable companies to design, implement and manage their own customized e-commerce sites, including Web sites, mobile applications and other digital storefronts. This stock is trading up 6.7% at $30.93 in recent trading.

Today’s Volume: 554,000

Average Volume: 175,166

Volume % Change: 539%

Shares of DWRE are ripping higher today after Janney Montgomery Scott initiated coverage on the stock with a buy rating.

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From a technical perspective, DWRE is spiking big here with monster volume. This move is quickly pushing DWRE within range of triggering a major breakout trade. That trade will hit once DWRE takes out some near-term overhead resistance at $31.57, and then its all-time high of $31.98 with high volume. At last check, DWRE has hit an intraday high of $31.77 and volume is well above its three-month average action of 175,166 shares.

Traders should now look for long-biased trades once DWRE sustains a move or close above $31.57 to $31.98 with volume that’s near or above 175,166 shares. If that breakout triggers soon, then DWRE will have a great chance of trending higher toward $35 to $40 in the near future.

NetSuite

NetSuite (N) provides cloud-based financials/enterprise resource planning software suites in the United States and internationally. This stock is trading up 3.2% at $59.36 in recent trading.

Today’s Volume: 553,000

Average Volume: 648,883

Volume % Change: 95%

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From a technical perspective, N is trending higher here right off some near-term support at $56 with decent volume. This move is quickly pushing N within range of triggering a major breakout trade. That trade will hit once N takes out some near-term overhead resistance at $59.22 with high volume. At last check, N has hit an intraday high of $60.05 which is now also its new 52-week high. Traders should now look for long-biased trades in N as long as it’s trending above $59.22 with strong upside volume flows. I would consider any upside volume day that registers near or above 648,883 shares as bullish. If N can hold that trend, then this stock has a great chance of tagging $65 to $70 in the near future.

Qihoo 360 Technology

Qihoo 360 Technology (QIHU) is engaged in the operations of Internet services and sales of third party anti-virus software in the People's Republic of China. This stock is trading up 1% at $24.23 in recent trading.

Today’s Volume: 3.3 million

Average Volume: 1.9 million

Volume % Change: 180%

Shares of QIHU are trending higher today after Citi analyst Ravi Sarathy said the company is one of his top picks in the Internet sector, noting good fundamental value, solid catalyst profile and good financial operating momentum.

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From a technical perspective, QIHU is bouncing here near some previous support at $23 with above-average volume. This move has also briefly pushed QIHU into breakout territory, since the stock has flirted with some near-term overhead resistance at $24.88. At last check, QIHU has hit an intraday high of $25.47 but it’s subsequently pulled back to around $24.

Traders should now look for long-biased trades in QIHU as long as it’s trending above $23 to $24.88 with strong upside volume flows. I would consider any upside volume day that registers near or above 1.9 million shares as bullish. If QIHU can hold that trend, then this stock has a great chance of re-testing or possibly taking out its next significant overhead resistance levels at $26.18 to $26.35. Any high-volume move above those levels would setup QIHU to possibly hit $30.

CommVault Systems

CommVault Systems (CVLT) is a provider of data and information management software applications and related services. This stock is trading up 1.8% at $54.84 in recent trading.

Today’s Volume: 599,000

Average Volume: 613,861

Volume % Change: 78%

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From a technical analysis, CVLT is rising modestly here with decent volume. This move is quickly pushing CVLT within range of triggering a major breakout trade. That trade will hit once CVLT takes out some past overhead resistance and its 52-week high of $55.49 with high volume. At last check, CVLT has hit an intraday high of 55.46 and volume is very close to eclipsing its three-month average action of 613,861 shares.

Traders should now look for long-biased trades in CVLT as long it’s trending above $53.90, and then once it sustains a move or close above $55.49 with volume that’s near or above 613,861 shares. If that breakout triggers soon, then CVLT will have a great chance of hitting $60 to $65 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 stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.