Stock Quotes in this Article: ALLT, GSIG, IILG, MGLN, NILE, SUSS, TRAK, Z

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.

Blue Nile

Blue Nile (NILE), an online retailer of diamonds and fine jewelry, is trading up 13.5% at $30.99 in recent trading.

Today’s Volume: 638,000

Average Volume: 339,042

Volume % Change: 394%

Shares of NILE are skyrocketing today after the company reported a 3.6% rise in its first quarter net sales that exceeded Wall Street estimates.

From a technical perspective, NILE is ripping higher here on above average volume as the stock flirts with taking out its 50-day moving average of $32.03. At last check, NILE has hit an intraday high of $31.67.

Traders should now look for long-biased trades if NILE can trigger a near-term breakout trade. That trade will hit once NILE takes out its 50-day and some near-term overhead resistance at $32.77 with high volume. Look for volume on that move that’s near or above 339,042 shares. If we get that action soon, look for NILE to make a run at $35 to its 200-day moving average of $36.79.

Interval Leisure Group

Interval Leisure Group (IILG) is a global provider of membership and leisure services to the vacation industry. This stock is trading up 11% at $19.51 in recent trading.

Today’s Volume: 492,000

Average Volume: 204,716

Volume % Change: 370%

Shares of IILG are soaring today after the company reported first quarter earnings of 27 cents per share, which was in-line with the Wall Street’s estimate of 27 cents. Revenue for the quarter came in at $126.7 million versus the consensus estimate of $122.2 million.

From a technical perspective, IILG is gapping up huge here on above average volume. This move has pushed IILG into breakout territory since the stock gapped over some previous overhead resistance at $17.90.

Traders should now look for long-biased trades if IILG is trending above today’s high of $20.24 with strong upside volume flows. I would look for short-biased trades if IILG is trending below today’s low of $19.33 with heavy volume.

Susser

Susser (SUSS) is a non-refining convenience store operator, as well as a non-refining motor fuel distributor. This stock is trading up 3.5% at $29.32 in recent trading.

Today’s Volume: 225,000

Average Volume: 142,939

Volume % Change: 202%

Shares of SUSS are rising modestly today after the company said its total revenue for the first quarter increased by 21% from a year earlier, to $1.4 billion. The increase was driven by a 19.1% increase in retail fuel revenues, a 30.5% increase in wholesale fuel sales, and an 11.4% increase in merchandise sales.

From a technical perspective, SUSS is moving higher here on above average volume, and this stock has entered breakout territory since its moving above some near-term overhead resistance at $28.38.

Traders should continue to look for long-biased trades if SUSS can manage to close near or above its daily highs, and maintain its trend above $28.38. At last check, SUSS has hit an intraday high of $29.64. If we continue to see SUSS trending above those key levels with strong volume, then this stock could hit $32 to $35 in the near future.

GSI Group

GSI Group (GSIG) designs, develops, manufactures and sells precision motion control devices and associated precision technologies, photonics-based solutions (consisting of lasers, laser systems and electro-optical components) and semiconductor systems. This stock is trading up 8.2% at $12.31 in recent trading.

Today’s Volume: 231,000

Average Volume: 116,771

Volume % Change: 255%

Shares of GSIG are soaring today after the company said it expects adjusted EBITDA to be largely in-line with prior estimates of at least 10% growth over fiscal 2011.

From a technical perspective, GSIG is ripping back above its 50-day moving average of $11.83 here on above average volume. This move is quickly pushing GSIG within range of triggering a major breakout trade. That trade will hit once GSIG can sustain a high-volume move or close above some past overhead resistance at $12.38 to $12.80.

Traders should continue to look for long-biased trades if GSIG can take out those levels with volume that’s near or above 116,771 shares. If we get that action soon, look for GSIG to re-test its 2011 high of $14 in the very near future.

DealerTrack

DealerTrack's (TRAK) Web-based software solutions and services are provided for all segments of the automotive retail industry, including dealers, lenders, other equipment manufacturers, third party retailers, agents and aftermarket providers. This stock is trading up 7.9% at $31.11 in recent trading.

Today’s Volume: 481,000

Average Volume: 418,176

Volume % Change: 142%

Shares of TRAK are ripping higher today after the company beat earnings estimates by 2 cents per share, beat on revenues, and raised its 2012 earnings per share above Wall Street consensus.

From a technical perspective, TRAK is spiking higher here right off its 50-day moving average of $29.90 on above average volume. This move is quickly pushing TRAK within range of triggering a major breakout trade. That trade will hit once TRAK can sustain a high-volume move or close above $31.90.

Traders should now look for long-biased trades if TRAK can manage to take out $31.90 with volume that’s near or above 418,176 shares. If we get that action soon, that will mean that TRAK has hit a new 52-week high and the stock should continue is upside momentum towards $35.

Zillow

Zillow (Z) provides information about homes, real estate listings and mortgages, through its Website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals. This stock is trading up 1% at $43.37 in recent trading.

Today’s Volume: 363,000

Average Volume: 438,829

Volume % Change: 53%

From a technical perspective, Z has started to enter breakout territory today since this stock is moving above some near-term overhead resistance at $42.50 on decent volume.

Traders should continue to look for long-biased trades as long as Z is trending above $42.50 with strong upside volume flows. I would consider any up-day with volume that’s near or above 438,829 shares as bullish. If we continue to see this stock trending above $42.50 then it could be well on its way towards $50.

Zillow was also featured recently in "5 Stocks to Buy Instead of Facebook."

Magellan Health Services

Magellan Health Services (MGLN) is engaged in the specialty managed healthcare business. This stock is trading up 1.6% at $43.72 in recent trading.

Today’s Volume: 202,000

Average Volume: 176,860

Volume % Change: 111%

Shares of MGLN are rising modestly after Bank of America upgraded the stock from underperform to buy, and raised its price target from $44 to $52.

From a technical perspective, MGLN is gapping up modestly here on above average volume, but the stock is still trending well below both its 50-day and 200-day moving averages.

Traders should now look for long-biased trades if MGLN can move above its daily high of $44.99 with high volume. Look for a move or close above that level on volume that’s near or above 176,860 shares. If we get that action soon, then MGLN could re-test its 50-day moving average of $46.94 in the near-term.

On the flipside, I would look for short-biased trades if MGLN moves back below today’s low of $43.49 or if it takes out some previous support at $42.08 with volume.

Allot Communications

Allot Communications (ALLT) is a provider of Internet protocol (IP) service optimization solutions for mobile, digital subscriber line and wireless broadband carriers, cable operator service providers and enterprises. This stock is trading up 1% at $23.35 in recent trading.

Today’s Volume: 633,000

Average Volume: 455,592

Volume % Change: 172%

From a technical perspective, ALLT is bouncing here right off its 50-day moving average of $22.30 on above average volume.

Traders should now look for long-biased trades as long as ALLT is trending above its 50-day with strong upside volume flows. I would consider any up-day volume that’s near or above 455,592 shares as bullish. IF we continue to see ALLT trending above its 50-day, then this stock could be setting up to re-test its recent high of $26.97.

On the flipside, I would look for short-biased trades if ALLT moves back below its 50-day at $22.30 with heavy volume. Some possible downside targets are $20 or lower if the 50-day is taken out with volume.

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.