Chart of the Day: Maybe This Marvell Pullback Is Just What Is Needed
The stock came back hard this week and perhaps setting up a nice buying opportunity.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
When the sellers hit semiconductor names no company gets hit harder than Marvell (MRVL) . We have experienced a swarm of downtrends in this stock but it is still standing tall. As we look back on the chart and the many drawdowns from higher levels, we note that each time there was a great buying chance to add shares.
We wrote about the move yesterday and divulged our plan for Marvell.
The current pullback has broken the line of support we drew in that linked back to the highs in August (arrow). That was an important level to hold but the stock sank below there on Wednesday, with higher volume to boot. Now, that may seem like a time to start selling the stock, but Marvell takes these moves in stride and doesn't waver.
In fact, as we look at the recent action in the stock, the uptrend from early September remains intact, and the candles are teal, which reflects a cautiously bullish price chart according to the GoNoGo composite of indicators. We'll take that as a sign to remain bullish until it changes.
Other indicators appear to be washed out and ready to turn back up, meaning this corrective period is likely over. Money flow is down towards the neutral line, stochastics (momentum) is about to bottom and the moving average convergence divergence (MACD), which is on a sell signal, is starting to tire out. Support at the moving averages here is crucial, and there are several layers.
At the time of publication, TheStreet Pro Portfolio was long MRVL.
