3 Oversold Stocks Flashing a Key Technical Breakout Signal

Key Points

• The resumption of copper concentrate shipments in Indonesia may be the catalyst that FCX stock needs to participate in gold’s strong rally.
• Generac has solid fundamentals that may be getting lost in the macroeconomic noise.
• Cameco is a solid long-term play on the bullish outlook for nuclear power.

The 200-day simple moving average (SMA) is widely regarded as an important technical signal for traders and investors. The idea is that 200 days represents a full year of trading days, so the 200-day SMA serves as a barometer for overall sentiment for a stock.

When a stock is trading above its 200-day SMA, it can signal that it is overbought and ready to move lower. Conversely, when a stock is trading below its 200-day moving average, it can signal that it is ready to move higher.

Of course, a stock price’s movement relative to its 200-day SMA doesn’t always follow this pattern. Investors have seen many stocks move above their 200-day SMA and higher and keep on moving, and some stocks move below their 200-day SMA based on weak fundamentals.

This article looks at three stocks that sold off recently and are trading below their 200-day SMAs. However, each stock has catalysts that may move each stock higher.

FCX Stock Is a Contrarian Play on the Continued Movement in Gold

Gold continues to push to new highs. And you don’t have to be a gold bug to believe that the spot price of gold is likely to hit $3,000 at some point in 2025.

The last few years have created a perfect storm for gold, but you would have a hard time believing that when you look at the stock chart of Freeport-McMoRan Inc. NYSE: FCX. The stock is up 3.16% in 2025 but is down 9.1% in the last six months.

By many technical measures, FCX stock looks like a no-go for traders. But if you’re looking for a stock that may break higher in 2025, it’s worth a look. One reason is that Freeport-McMoran mines copper in addition to gold and its export license in Indonesia expired in December 2024 which meant the company couldn’t ship copper concentrate. However, shipments are expected to resume under a new license in February 2025.

Prior to that news, FCX stock was trading around its 200-day SMA. Today, it’s not only about 15% below that level but also trading near its 52-week low. However, the FCX stock chart shows a base of support around its 50-day SMA. Investors will want to see a breakout, but the stock has shown the ability to make sharp movements in a short period.

Analyst Sentiment in GNRC Stock Outweighs Broader Uncertainties

When a company cites weather as a reason for their earnings results, it’s usually a sign of concern. But in the case of Generac Holdings Inc. NYSE: GNRC, you can make an allowance. The company cited stormy weather that produced a series of power outages as a reason for the company’s strong earnings report in January.

The report has temporarily put a floor on the GNRC stock decline, which has been in place since December 2024. That reversal came as investors became less optimistic about the timing and the pace of future interest rate cuts. A company like Generac is sensitive to the pressure that homeowners are under. Generac’s stock is also under pressure due to uncertainty involving the current administration’s energy and tariff policies, which could affect the data center buildout.

GNRC stock is consolidating around its 10-day SMA but is only about 10% below its 200-day SMA. Generac’s next earnings report won’t be until April. At that point, investors may have more clarity about the direction of inflation and interest rates. And even though investors have lowered their price targets since the earnings call, the consensus price of $174 is still 21% above the current price.

Cameco Looks Poised to Move Higher After Earnings

Cameco Corp. NYSE: CCJ is the world’s largest publicly traded uranium company.

The basic materials stock has been in a bullish trend since 2020, but the stock really started gathering momentum in 2024 as the global attitude toward nuclear power as a pure form of clean energy began to turn bullish.

CCJ stock is down 8% in 2025 as of the market close on February 18. However, this is looking like an opportunity as the stock is consolidating around the 200-day moving average.

The company reports earnings on February 20 and is expected to deliver revenue and earnings that are significantly higher year-over-year.