Industrial giant Honeywell International Inc. (HON) is seeing abnormal trading volume to start this week, touching all-time highs early in Monday's trading session on reports that a spin-off could be in the works.

Reuters is citing unnamed sources in a report that says Honeywell plans to spin off non-core assets in a transaction that would create at least two new publicly traded companies. While Honeywell declined to comment, the source puts an official announcement as early as this week.

While details remain scarce, the possibility of a value-unlocking spinoff is getting Honeywell shareholders energized -- and for good reason. It's already been an outstanding year for the stock, with shares up more than 24% since the calendar flipped to January. Shares aren't much changed in Monday's session despite all of the volume, but the bigger story is the technical setup that shares are still hanging onto.

Simply put, Honeywell looks as if it has significant upside potential in the final stretch of 2017. To figure out how to trade it from here, we're turning to the chart for a technical look:

The technical trading pattern in play in Honeywell right now is as simple as they get. But that simplicity hasn't tempered its effectiveness this year. Since last fall, Honeywell has been bouncing its way higher in a well-defined uptrending channel -- that uptrend remains in effect right now.

Honeywell's uptrend is formed by a pair of parallel trendlines that have corralled 99% of this stock's price action for all of 2017. And as shares bounce in between those constraints this year, Honeywell remains pointed up and to the right. The latest test of trendline support at the end of September provided a clear buying opportunity that's propelled shares higher for all of October.

From here, now's not a bad time to pull the trigger on the Honeywell trade. But the optimal time to buy comes on the next test of trendline support.

Relative strength, the side-indicator down at the bottom of Honeywell's price chart, adds some extra evidence for continued upside in this industrial stock. That's because relative strength has been hanging onto an uptrend of its own, signaling that Honeywell continues to outperform the rest of the broad market, even now. That suggests that HON is predisposed to continue outperforming on a three-to-six-month time horizon.

In short, Honeywell is still a "buy the dips stock" this fall -- it makes sense to pull the trigger on the next bounce higher.

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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.

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