NEW YORK (TheStreet) -- Shares of Deutsche Bank  (DB) - Get Report surged on Monday morning following the announcement that the company's co-CEOs will resign. The news-inspired upside gap lifted the stock over 5% to new June highs.

At midday, Deutsche Bank's stock was bumping up against its 200-day moving average of $32.25 while volume ran at a brisk pace. If the shares can maintain Monday's powerful early momentum, a healthy rally may be ahead.

Deutsche Bank has not had time to build much in the way of a base, but Monday's climb has left behind a solid layer of nearby support from $32 to $31.50. The stock is a buy in this zone.

A close back below the Friday low of $30.30 would be a clear warning sign that a more drawn-out bottoming formation will be needed before Deutsche Bank shares can mount a healthy rally. Past the May peak, the stock will be set up well for a run at its 2015 high set in early April at $36.20. That is a major resistance area and includes the September 2014 top. A pullback from this level is likely before it can be cleared.

Deutsche Bank is battling its 200-day moving average with an impressive jump in volume. The stock is on pace to print its heaviest upside day since the second quarter of 2013. Once the shares begin to put some distance on its flattening 200-day, an overhead trend line that links the April and May highs will be clearly broken.

A close back above the May highs at $33.35 should give Deutsche Bank investors a confidence jolt. That would also put a great deal of pressure on the shorts. Heading into this week, Deutsche Bank had a rather high short interest ratio of 5.8.

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At the time of publication, Morrow had no positions in the stock mentioned.