Perfect World

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Perfect World ( PWRD) is an online game developer and operator in China. This stock closed up 5.8% at $21.40 in Wednesday's trading session.

Wednesday's Volume: 1.14 million
Three-Month Average Volume: 758,073
Volume % Change: 110%

From a technical perspective, PWRD bounced sharply higher here right off some near-term support at $20 with above-average volume. This stock has been uptrending strong for the last four months, with shares moving higher from its low of $9.72 to its recent high of $22.82. During that uptrend, shares of PWRD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of PWRD within range of triggering a major breakout trade. That trade will hit if PWRD manages to take out some near-term overhead resistance at $22 to its 52-week high at $22.82 with high volume.

Traders should now look for long-biased trades in PWRD as long as it's trending above $20 or its 50-day at $18.84 and then once it sustains a move or close above those breakout levels with volume that's near or above 758,073 shares. If that breakout hits soon, then PWRD will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $26 to $28.

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.

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