Generac (GNRC)

There is some interest in Generac (GNRC), which is a stock we have been watching.

Generac (GNRC): Big Base Potential on Absolute and Relative Charts

GNRC appears to be forming big bases both in absolute terms and relative to the S&P 500 (SPX), dating back to late 2022. The key for both setups is holding important weekly moving averages (WMAs).

On the absolute chart, GNRC has key support from 163.61 down to 147.91, where the 38.2%–50% retracements of the April–August rally align with the 200-, 26-, and 40-WMAs. The 61.8% retracement near 139 marks deeper support. Holding the low 160s to upper 140s would keep the bottoming process intact and increase the potential for a breakout above 194–203, confirming the big base. Such a breakout would suggest upside to 249–250 (38.2% retracement of the 2021–2023 decline) and potentially into the low 300s (50% retracement and pattern targets).

Relative to the SPX, holding the 26- and 40-WMAs would support this bullish absolute setup and strengthen the case for a big base versus the broader market.

Chart 1: Generac (GNRC)