Technical Insights for MARVELL TECHNOLOGY INC (NASDAQ:MRVL): Is a Breakout Imminent?

A possible breakout setup was detected on MARVELL TECHNOLOGY INC (NASDAQ:MRVL) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:MRVL.

Deciphering the Technical Picture of NASDAQ:MRVL

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 9 out of 10 to MRVL. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, MRVL is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• 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.
• In the last month MRVL has a been trading in the 66.80 - 76.43 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that MRVL is one of the better performing stocks in the market, outperforming 80% of all stocks. However, this overall performance is mostly based on the strong move around 7 months ago.
• MRVL is part of the Semiconductors & Semiconductor Equipment industry. There are 107 other stocks in this industry, MRVL did better than 59% of them.

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

Why is NASDAQ:MRVL a setup?

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.

MRVL has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 73.45, a Stop Loss order could be placed below this zone.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

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

Keep in mind

This article should in no way be interpreted as advice. 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.