It certainly has been a wild year in the stock market so far, and the breakneck speed of Wall Street’s recovery from the April lows has likely left some investors feeling like they missed the opportunity to put money to work. Fortunately, when it comes to long-term investing, there is always another opportunity. While we prefer to focus on the fundamentals — thinking about valuations, catalysts, growth, and so on — looking at the charts can help target entry and exit points. After all, fundamental investing helps understand what the rational investor will do. However, the stock price is determined by all investors, both rational and irrational. So, through the charts, we can better understand the full spectrum of buying and selling activity when it comes to a given stock. This is why, even for fundamental investors like us, it’s important to allocate at least some of the time spent doing stock homework to studying the charts. We love all three of the stocks that we’re about to highlight based purely on their businesses. They are all stocks worth owning. But where are the possible pullbacks for new investors to get in? Two key levels to watch are the 50-day moving average (green line) and 200-day moving average (maroon line), which tend to serve as support when the stock is trading above them and as a resistance level when the stock is trading below them. By their name, moving averages are moving all the time. There are also long-term horizontal support/resistance lines (straight black lines) that technical analysts focus on. Those are static. So, more than the exact prices, we want to show investors how to spot the moving averages and long-term trend lines on the charts, which were captured Monday afternoon. GE Vernova Potential entry points: $456, $406, and $356 — representing pullbacks of about 13%, 23%, and 32%, respectively, from Monday afternoon levels. We currently have GE Vernova at a 2 rating . Looking at a one-year chart of GE Vernova , we would look first to the 50-day, which stands at about $456. The 200-day doesn’t come into play until about $100 lower at $356. A gap of $100 on a roughly $500 stock is quite significant. For a level in the middle, let’s consider where GE Vernova shares traded in the aftermath of President Donald Trump ‘s reciprocal tariff announcement. At the time, the stock bottomed, on April 4, at around 35 times next 12 month’s (NTM) earnings or about 40 times next fiscal year’s earnings estimates. If we apply those multiples to the current earnings estimate on the stock for 2026, which currently stands at $11.30 per share, we get a range in the $395 to $452 region. A safe bet would be to split the difference between $456 and $356, and plan out three separate buys. One at the 50-day $456, one near the trough valuation range we saw in early April, call it $406, and one down at the 200-day moving average, at around $356. Note that we also broke through a key long-term resistance level at around $350, so we have a few reasons to believe that strong support would come in around there. Why we own it GE Vernova is the old power business of General Electric that was spun off into a standalone firm in April 2024. The overarching theme here is that the world seriously needs more power and electrification. Competitors: Mitsubishi Power and Siemens Energy Initiated: May 13, 2025 As a caveat here, we must consider “the why” behind moves down to any of those levels. If it’s due to general market weakness and not a problem with GE Vernova, then it’s likely an opportunity. However, should we see these levels because of earnings estimate cuts or some company-specific challenges, then all bets are off, and we must first consider whether the investment thesis remains intact. Put another way, these levels are only of interest so long as the investment thesis remains intact. Honeywell Potential entry points: $230, $220, and $200 — representing pullbacks of about 4%, 8% and 17%, respectively. We maintain a 1 rating on Honeywell , so we wouldn’t be against buying here. But for those who want to see a bit of a pullback, $230 would be interesting as it has proved to be a long-term resistance level around the end of 2024 and in early June, before the stock finally broke through. The polarity principle in technical analysis says that prior resistance, once broken, becomes new support. From there, we would key on $220. As we can see in the chart, $220 was resistance for much of 2024 until November, when it broke out. It served briefly as support in January. It failed again in early February on the back of fourth-quarter earnings. It was retaken in May. Since then, $220 served as support in mid-to-late June before the stock made a decisive move higher in late June and early July. So, should $230 fail to hold, $220 would be the next level to watch. It should also be noted that the 50-day moving average comes into play at around $222, while the 200-day moving average comes into play at $216. Therefore, there are several forms of resistance for buyers to lean on as we approach this region. Why we own it Honeywell is a provider of industrial technology solutions to companies in various industries. In addition to a rebound in short-cycle businesses, which is admittedly taking longer than previously expected, management is on the right track to unlocking further value for shareholders thanks to its breakup plan. The plan will see Honeywell break up into three individual companies: Automation, Aerospace, and Advanced Materials. Competitors: Emerson Electric , RTX , 3M Initiated: July 5, 2020 There has also been a recently formed “golden cross,” which is what technical analysts call it when the 50-day moving average crosses through the 200-day moving average from below. This is generally viewed as a bullish pattern. From there, while a case could be made for $210, we have to consider that a move to here would mean that the stock had violated the 50-day and 200-day moving averages. So, a bit of added caution would be warranted. As a result, we would look to the $200 level, which, aside from being blown through on the back of Trump’s reciprocal tariff announcement, has served as a strong level of support for over a year now. Amazon Potential entry points: $210, $205, and $190 — representing pullbacks of about 6%, 8% and 15%, respectively. Like Honeywell, we have a buy-equivalent 1 rating on Amazon . Let’s take a look at some other interesting entry points, should we see some weakness. From Monday levels, we would look to $210, as we previously saw this level serve as resistance in mid-May, before being broken through in early June and then serving as support (again, the polarity principle) as recently as late June. Then watch for $205. While that is playing it pretty tight, both the 50-day and 200-day moving averages are found there. Indeed, we are witnessing a “golden cross” in the making, further justification for those looking to step in here and now, rather than waiting for a pullback. However, we only say that because of the strong fundamentals — many of which we have highlighted in recent weeks. Below $205, while caution would be warranted given a move below that level means we’ve broken through both key moving averages, we would look to $190, which served as resistance until early November 2024, and then as a general area of support up until Trump’s reciprocal tariff announcement after the market close on April 2. It then served as resistance for a little over a month before the stock regained that level and proceeded higher. Again, we are leaning on the polarity principle here, calling out a prior level of resistance as an area of potential support now that shares are trading above it. Why we own it Amazon may be widely known for online shopping, but its cloud business is the real breadwinner. Advertising is another fast-growing business with high margins. Prime leverages free shipping and video streaming with tons of other perks to keep users paying every month. Amazon is using AI to improve all aspects of its business. Competitors : Walmart , Target , Microsoft , and Alphabet Initiated : February 2018 As was the case for Honeywell, we opted to implement a slightly “wider scale” between the second and third levels, given that a move to the third level would violate two key long-term moving averages. “Wider scales” means that we want to be more cautious and wait for bigger declines before stepping in. We call for wider scales from time to time to reflect either increased uncertainty on the fundamentals — like when a stock misses earnings without a good explanation from management, or in this case, when the technical setup becomes more problematic, like when a stock breaks through several key areas of support and begins to look like a falling knife. It is in these instances that a review of the investment thesis is especially important. (Jim Cramer’s Charitable Trust is long GEV, HON, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. 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Here are buy levels for 3 stocks with big rallies since April’s Trump tariff lows
