The AI data center theme is alive and well, putting the wind at the back of Club names Eaton and GE Vernova . The strength of the data center was one of Jim Cramer’s takeaways from a recent trip to Kentucky to visit a Corning factory alongside the glassmaker CEO’s and Apple boss Tim Cook. Our conviction is further supported by Oracle’s blockbuster earnings report last week, on top of positive commentary from Eaton and GE Vernova executives at the Morgan Stanley Laguna conference. Put simply, the gargantuan wave of capital that’s been fueling the construction of data centers to meet AI computing demand isn’t slowing down. That gives us confidence in the current fundamentals of both Eaton and GE Vernova, as well as their longer-term growth prospects. Eaton makes electrical equipment that goes inside data centers, and GE Vernova’s gas turbines help generate electricity. With the stocks of Eaton and GE Vernova appearing to be on the verge of a breakout, we wanted to provide a closer look at their technical setups. It’s no secret that we consider ourselves fundamental investors at the Club — our goal is to find quality companies with growth opportunities that will make more valuable in the future than they are today. At the same time, we aren’t oblivious to the role of technical analysis. Indeed, the charts can be helpful in determining levels of interest, as long as the stock’s fundamentals are good enough for us to even consider to begin with. While we would entertain the idea of buying the stock of a company with strong fundamentals and poor technical setup, we would never buy the stock of a company with poor fundamentals, no matter how bullish the technical setup may be. As we like to say, fundamentals work until they change, technical patterns work until they don’t. There are countless technical tools one could use to analyze stock charts, but we prefer to keep things simple, focusing on moving averages, trend lines and horizontal support/resistance levels. Lastly, this exercise is generally geared toward investors who don’t yet have a position in Eaton or GE Vernova. If you’re already a shareholder and want a bigger position, also consider your cost basis and last purchase price. Now let’s get into it. Eaton In our look at Eaton’s chart, we identified three potential entry points: $363 $345-$350 $330 In the chart below, what we see is that shares are breaking out above the 50-day moving average (green line), which currently stands at just below the $363 level. That’s about 3% south of current prices and just under 8% off the all-time closing high. On the more aggressive side of things, you could step in now to pick up shares on that move, which aligns with last week’s bullish updates. (For our part, we currently maintain a buy-equivalent 1 rating on Eaton stock.) However, the more conservative move would be to wait for a retest of the 50-day. When a stock is trading above a moving average, it’s viewed as support. On the other hand, when a stock is trading below a moving average, it’s viewed as resistance. Some investors might decide to step in right when shares hit their 50-day moving average. The more conservative investor, however, will not only wait for the retest, but for confirmation as well. What that means is that you let shares come back down – risking the possibility that we don’t see that level again – and then bounce off the 50-day, which would confirm support at this level. From there, you then buy the bounce. While that results in paying a bit more than the 50-day level, the upshot is you have confirmation that the level is indeed serving as support now that it has been overcome. Below $363 territory, the next place we would look to step in is around the $345-to-$350 level (marked by the two black lines). We’ve seen this region act as resistance in the past, and recently, support after it was overcome in late June. Moreover, from a valuation perspective, the $345-to-$350 level gets you in the stock at about 25 times 2026 earnings estimates. That would be at the lower end of the valuations we’ve seen over the past year, with the exception of the lows realized in April, when the market was in freefall resulting from the announcement of President Donald Trump’s “reciprocal” tariffs. Finally, the 200-day moving average is always an important level for long-term investors. Because it’s factoring in four times the amount of days compared to the 50 day moving average, the 200-day moving average is less sensitive to recent price action and, as a result, more reflective of the longer-term trend. For Eaton, that currently stands at around $330 (purple line). If reached that would represent a pullback of roughly 12% from current levels. GE Vernova The three levels to watch for GE Vernova, as indicated by the charts, are: $609 $549 $435 Similar to what we see in the Eaton chart, shares have reclaimed the 50-day moving average (green line), indicating that we should look to it as support. That would put our first buy at around the $609 level. A move to this spot would represent a pullback of about 3% off current levels, or about 8% off the all-time closing high. From there, the incredible move we’ve seen in the stock makes it bit tougher to call out clear-cut support levels. However, we would highlight the $549 level as a potential entry point for those looking to get in. Why? This is where shares traded right before the company reported what we viewed as a blowout earnings report . So, if we see shares trade to that level, you’re basically getting the positive updates from the report — as well as last week’s positive news flow — for free. A pullback to $549 would represent a decline of nearly 13% from current levels. Below that, we are somewhat in no man’s land until we get to the 200-day moving average (purple line), which stands at around the $435 level, about 31% off current levels. Notably, this is also where we saw shares peak in late January. To be sure, it would likely take a broad-based market correction for GE Vernova to revisit that territory. But if we did see a decline to that price based on external factors and not something specific to the company itself, that would be highly intriguing. We currently maintain a 2 rating on GE Vernova, our hold-equivalent designation that indicates we want to see a pullback before adding to our position. Given the incredible move we’ve seen year-to-date (up roughly 86%) and over the past year (soaring some 174%), we do think members would be well served to play this one with “wider scales” – meaning be a bit more patient with each buy in order to maximize the effect of lowering your cost basis with each purchase. GE Vernova also trades at a significant valuation premium. It’s currently at nearly 51 times 2026 earnings estimates, toward the higher end of the range we’ve seen over the past year. (Jim Cramer’s Charitable Trust is long AAPL, GEV and ETN. 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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