DuPont (DD) - Get Report  was the top gainer in the Dow Jones Industrial Average on Monday. DuPont opened the new week with a 1.9% gain on its heaviest upside trade since mid-March. This powerful rally carried the stock to new May highs as it extended the rally off last week's low to 6.5%.

With a solid foundation building underneath, DuPont is setting up well for more upside. The stock is still range-bound, but investors should take a more positive view in the near term.

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In late April, DuPont appeared headed for a breakout move. On the morning of April 26, DuPont opened the session with a powerful earnings-inspired upside gap. The stock finished the day with a 2.4% gain after reaching new highs for the year. Unfortunately for the bulls, the news-inspired surge was a one-day event. A few days later, the stock had fallen back into its 10-week range, leaving behind an ominous spike high in the process.

DuPont was in danger of a much deeper selloff as overhead pressure from the failed rally grew, but the stock managed to find its footing near key support at the $62.50 area. Since the stock held this level last week, a recovery has been brewing.

The rebound over the last three sessions is beginning to leave behind layers of support. The $62.50 area has now proven to be an important area. DuPont now has multiple weekly lows in March, April and May near this area. If DuPont can power past April's spike high, more solid support will be in place. For DuPont bulls, the $68 area is a key level. The stock will have plenty of room to run once this area is convincingly cleared.

Until then, the stock should be considered a low-risk buy between $65.70 and $64. A close back below $62 would indicate that more range=bound trade is ahead before a fresh rally leg can begin.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long DD.