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."

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 recently.


Hyatt Hotels

  • Monday's Volume: 1.80 million
  • Three-Month Average Volume: 780,026
  • Volume % Change: 134%

Hyatt Hotels (H) - Get Report , a hospitality company, develops, owns, operates, manages, franchises, licenses or provides services to full and select service hotels, resorts and residential and vacation properties. This stock traded up 5% to $49.82 in Monday's trading session.

From a technical perspective, Hyatt Hotels ripped sharply higher on Monday right above its 20-day moving average of $47.24 a share and back above its 200-day moving average of $49.66 a share with strong upside volume flows. This move also sent this stock into breakout territory, since shares of Hyatt Hotels managed to clear some near-term resistance levels at $48.94 to $49.07 a share. This high-volume spike to the upside is now starting to push this stock within range of triggering another big breakout trade. That trade will trigger if shares of Hyatt Hotels manages to take out some near-term overhead resistance levels at $50 to $51 a share and then above $51.23 a share with high volume.

Traders should now look for long-biased trades in Hyatt Hotels as long as it's trending above its 20-day moving average of $47.24 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 780,026 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $52.88 to $54 a share.

Valeant Pharmaceuticals

  • Monday's Volume: 71.33 million
  • Three-Month Average Volume: 13.57 million
  • Volume % Change: 420%

Valeant Pharmaceuticals (VRX)  develops, manufactures and markets pharmaceuticals, over-the-counter products and medical devices worldwide. This stock traded up 7.4% to $28.98 in Monday's trading session.

From a technical perspective, Valeant Pharmaceuticals ripped sharply higher on Monday off its new 52-week low of $25.99 a share with monster upside volume flows. This rip to the upside is coming off extremely oversold levels, since its current relative strength index reading is 23.6. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from. Market players should now look for a continuation move to the upside in the short-term if shares of Valeant Pharmaceuticals manages to take out Monday's high of $31.59 a share with strong upside volume flows.

Traders should now look for long-biased trades in Valeant Pharmaceuticals as long as it's trending above its new 52-week low of $25.99 a share and then once it sustains a move or close above Monday's intraday high of $31.59 a share with volume that registers near or above 13.57 million shares. If that move gets started soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $34 to around $35.50. Any high-volume move above $35.50 will then give this stock a chance to re-fill some of its previous gap-down-day zone from earlier this month that started near $55 a share.

Dermira

  • Monday's Volume: 402,000
  • Three-Month Average Volume: 159,079
  • Volume % Change: 137%

Dermira(DERM) - Get Report , a biopharmaceutical company, engages in identifying, developing and commercializing therapies to enhance the lives of patients with dermatologic diseases primarily in the U.S. This stock traded up 2.8% to $20.45 in Monday's trading session.

From a technical perspective, Dermira trended notably higher on Monday with strong upside volume flows. This stock has been downtrending badly over the last three months, with shares collapsing off its recent high of $35.75 to its low of $17.42 a share. During that downtrend, shares of Dermira have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of Dermira have now started to rebound sharply off that $17.42 a share, and it's quickly trending within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out Monday's intraday high of $20.52 a share and then once it clears more key resistance levels at $21 to its 20-day moving average of $21.68 a share and then above $22 a share with high volume.

Traders should now look for long-biased trades in Dermira as long as it's trending above Monday's intraday low of $19.63 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 159,079 shares. If that breakout materializes soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at its 50-day moving average of $24.45 a share to its 200-day moving average of $25.20 a share.

Alliance Fiber Optic Products

  • Monday's Volume: 388,000
  • Three-Month Average Volume: 190,134
  • Volume % Change: 93%

Alliance Fiber Optic Products (AFOP)  designs, manufactures and markets various fiber optic components and integrated modules for communications equipment manufacturers and service providers in the U.S., North America, Europe and Asia. This stock traded up 6.1% to $15.04 in Monday's trading session.

From a technical perspective, Alliance Fiber Optic Products spiked sharply higher on Monday right above some near-term support at $14 a share with strong upside volume flows. This stock has been uptrending strong over the last few weeks, with shares moving higher off its low of $12.67 to its intraday high on Monday of $15.29 a share. During that uptrend, shares of Alliance Fiber Optic Products have been consistently making higher lows and higher highs, which is bullish technical price action. This move is now quickly pushing shares of Alliance Fiber Optic Products within range of triggering a near-term breakout trade. That trade will trigger if this stock manages to take out some near-term overhead resistance at $15.30 a share with high volume.

Traders should now look for long-biased trades in Alliance Fiber Optic Products as long as it's trending above Monday's intraday low of $14.31 or above more support at $14 a share and then once it sustains a move or close above those breakout levels with volume that registers near or above 190,134 shares. If that breakout fires off soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $16.09 to $16.12, or even its 200-day moving average of $16.57 a share.

Square

  • Monday's Volume: 5.09 million
  • Three-Month Average Volume: 1.89 million
  • Volume % Change: 114%

Square(SQ) - Get Report  develops and provides payment processing, point-of-sale, financial and marketing services worldwide. This stock traded up 11.3% to $13.40 in Monday's trading session.

From a technical perspective, Square jumped sharply higher on Monday right off some near-term support at $12 a share with monster upside volume flows. This large move to the upside manage to send shares of Square into breakout territory, after the stock took out some near-term overhead resistance levels at $12.50 to $12.65 a share. This high-volume rip is now quickly pushing this stock within range of triggering another near-term breakout trade. That trade will trigger if Square manages to clear some near-term resistance at $13.50 a share with high volume.

Traders should now look for long-biased trades in Square as long as it's trending above its previous breakout level at $12.65 or above more near-term support at $12 a share and then once it sustains a move or close above $13.50 a share with volume that hits near or above 1.89 million shares. If that breakout triggers soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at around $14 or its all-time high at $14.78 a share.

Landec

  • Monday's Volume: 326,000
  • Three-Month Average Volume: 109,356
  • Volume % Change: 214%

Landec(LNDC) - Get Report , together with its subsidiaries, designs, develops, manufactures and markets differentiated products in food and biomedical materials markets. This stock traded up 4.9% to $10.92 in Monday's trading session.

From a technical perspective, Landec ripped sharply higher on Monday right off its 20-day moving average of $10.44 a share and briefly back above its 50-day moving average of $10.99 a share with above-average volume. This stock recently formed a double bottom chart pattern, after shares found some buying interest at $9.48 to $9.65 a share. Following that potential bottom, shares of Landec have now ripped higher with the stock hitting an intraday high on Monday of $11.15 a share. Market players should now look for a continuation move to the upside in the short-term if this stock manages to clear Monday's intraday high of $11.15 a share with high volume.

Traders should now look for long-biased trades in Landec as long as it's trending above its 20-day moving average of $10.44 a share and then once it sustains a move or close above Monday's intraday high of $11.15 a share with volume that hits near or above 109,356 shares. If that move gets underway soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $12 to $12.30, or even its 200-day moving average of $12.45 to $13 a share.

Baxalta

  • Monday's Volume: 13.34 million
  • Three-Month Average Volume: 8.75 million
  • Volume % Change: 90%

Baxalta (BXLT) , a biopharmaceutical company, develops, manufactures and markets a portfolio of products primarily for the treatment of hemophilia, immunology and oncology worldwide. This stock traded up 2% to $39.84 in Monday's trading session.

From a technical perspective, Baxalta spiked notably higher on Monday right off its 50-day moving average of $39.34 a share with strong upside volume flows. This high-volume move to the upside is now quickly pushing shares of Baxalta within range of triggering a near-term breakout trade above some key overhead resistance levels. That breakout will hit if this stock manages to take out some near-term overhead resistance levels at $40.18 to $40.33 a share with high volume.

Traders should now look for long-biased trades in Baxalta as long as it's trending above its 50-day moving average of $39.34 a share or above its 20-day moving average of $39.12 a share and then once it sustains a move or close above those breakout levels with volume that hits near or above 8.75 million shares. If that breakout develops soon, then this stock will set up to re-test or possibly take out its next major overhead resistance level at its all-time high of $42.31 a share. Any high-volume move above $42.32 will then give this stock a chance to make a run at $45 to $50 a share.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.