Chart of the Day: Watch Out, Marvell Could Make a Sudden Move
We like the chart here and believe earnings will be the catalyst to move the stock higher.
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Sideways action is good to digest recently powerful moves.
Marvell Technology (MRVL) has been on the retreat lately, but so has the rest of the semiconductor group, just in time to wipe off the excess froth after the stock rose up smartly in September/October. During that time heavy volume prints were seen on the up days, but looking at the second move higher those prints were weak, and hence Marvell just ran out of gas in the low $90's.
On Tuesday, the company will post its latest quarterly earnings and all signs point to a strong beat and possibly very strong guidance. Momentum names such as Marvell often do well post earnings IF the stock retreats before. Call it "cautiously optimistic." That is where the market is at with Marvell.
Moving average convergence divergence (MACD) is on a buy signal crossover. That move back to support last week is important with good follow-through. The candle is now teal (cautiously bullish) as the stock is starting to pick up some positive momentum and bullish volume.
On the options side, there was some heavy call volume recently in the January 100 strikes and February 90's — all bullish.
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.
