Good technical signals and a possible breakout for MARVELL TECHNOLOGY INC.

MARVELL TECHNOLOGY INC (NASDAQ:MRVL) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:MRVL.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to MRVL. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, MRVL is only an average performer.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• MRVL is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 75% of 105 stocks in the same industry.
• MRVL is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so MRVL is lagging the market slightly.
• Looking at the yearly performance, MRVL did better than 92% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• In the last month MRVL has a been trading in the 58.83 - 66.81 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of MRVL

How does the Setup look for NASDAQ:MRVL

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:MRVL exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, MRVL also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 65.51. Right above this resistance zone may be a good entry point.

How can NASDAQ:MRVL be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Of course, there are many ways to trade or not trade NASDAQ:MRVL and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.