Chart of the Day: Can Marvell Pull Off a Stunner Before Big Day?
It is hard to keep a good stock down, just look at Marvell Technology ($MRVL). Following a strong earnings report in August the stock sold off, but only moderately and to some good support at the $200 level. It managed to build a good base there over a few days but the bulls did not want to wait much longer and just started buying the stock back up. Recent trends are bullish with good volume and positive stock price, indicating there is more upside coming.
The chart shows a series of higher highs and higher lows, our textbook definition of an uptrend. Candles are blue, which is bullish on the GoNoGo composite of indicators. Money flow just went positive after a short respite in bearish territory, the parabolic SAR (stop and reverse) is bullish, while stochastics are overbought. This just tells us momentum is strong and the dip buyers are active.
October 6 is the next big event, an investor day for Marvell where they may reveal some very positive initiatives.
We like Marvell in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
More Pro Portfolio:
- Charting the Markets: Leaving an Ugly September Behind
- 26 Signals Across 9 Portfolio Themes
- Weekly Roundup: Waiting for the Market to Show Its Hand
At the time of publication, TheStreet Pro Portfolio was long MRVL.
