Chart of the Day: Marvell Finds Itself Back in the 'Zone'
The stock is in familiar territory from the summer as buyers recently stepped in.
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Marvell Technology (MRVL) has been sloshing around in a range for some time now. Since May the stock has been as low as $60 but as high at $83.
That high level was tagged recently and matches the high from July (marked), so we might expect to see a bit of give-back. However, if that $83 level falls to the upside and there is some follow-through as well, we could be on our way to the triple digits.
Why is that? The very long, drawn-out base serves as good support, and remember "the longer the base, the higher the space" (Louise Yamada).
The indicators are fairly bullish at this point, with the moving average convergence/divergence (MACD) on a buy signal and stochastics peaking (momentum). That does not mean sell but it does mean an overbought condition is present and a pullback could be reasonable.
Do you buy that pullback?
It certainly makes good sense. Each drop has been a great buying opportunity for Marvell shareholders, including TheStreet Pro Portfolio. Money flow is bullish, which tells us the big money managers are coming in strong.
We like Marvell in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long MRVL.
