NEW YORK (TheStreet) -- Vulcan Materials (VMC) - Get Report began the week with a powerful 2.5% surge. The stock closed Monday at $94.03, above its previous 2015 high of $93.07, with the help of very heavy trade. This breakout move extends Vulcan Materials' rally off this month's low to nearly 12%.

In the near term, the stock is a bit extended but is nevertheless set up well for more upside. The upside momentum that was unleashed on July 10 could carry shares considerably higher.

Vulcan Materials began a monster bull run shortly after hitting its October 15, 2014, low. The stock traced out a textbook bull flag during March and April of this year after extending its rally to just over 50%. In late April, the stock broke out again, and shortly after, began a move to new highs. In mid-May, this phase ran out of steam before entering another textbook bull flag consolidation. At its May high of $93.07, Vulcan Materials had gained well over 60% from last October's low.

On July 10, Vulcan Materials surged more than 5% as its most recent eight-week consolidation came to an end. The stock attracted a healthy jump in trade that day, and has remained well-bid as it moved higher in two of the last three sessions.

This strong showing has left behind layers of support. The initial level is the stock's June high of $90.75. A fade back down to this level would provide bulls with a low-risk entry opportunity.

On the negative side, a close below last week's low of $88.50 ahead of Vulcan Materials' Aug. 5 earnings report would be a clear warning sign.

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