This marvelous stock is close to breaking out. Here’s how you trade Marvell Technologies (MRVL) ..
Discussed in this article: Marvell Technology Group Ltd. ( $MRVL )
I want to look at Marvell Technology ( NASDAQ:MRVL ) Last week in the Strategy Session for Stock Market Mentor I had mentioned Marvell Technologies ( NASDAQ:MRVL ) as a stock that you wanted to watch. My suggestion was that you watch it on two fronts. The stock is in, I wouldn’t quite call it of volatility squeeze because it’s not trading that tightly, but still you’ve got kind of a lower high there, you’ve got higher lows, but most importantly you’ve got the 50-day moving average and the price is pretty darn close to the 50-day moving average.
So my suggestion was you set price alert right above here, I think I might have even said 10.50, maybe a bit about that, I’m not sure but you set a price alert above there, but also watch this stock on a pullback, because this last low here, 10.68, that’s kind of a key low. So here, what I’m saying is, you want to really look at the 50-day moving average because that seems pretty reliable. So if you’re looking for a stock to trade this is a pretty safe one because it’s so close to support and that’s really what you want.
First of all was this in an uptrend or not? It kind of depends on which way you slice it. If you just want to look at the 50-day moving average I guess you could say it is, but for me, in this kind of jiggy market, I’m really looking at it as in a sideways consolidation more than an uptrend; I’d have a slight upside bias, but not really that much of an uptrend. So I’m looking to trade the range here; if it breaks out above resistance all the better and by the way, that’s what you expect. If all you’re doing is trading the stock for fifteen cents or something like that it’s not really worth much of a trade.
If you’ve been wanting to buy Marvell ( NASDAQ:MRVL ) you’re at a key buy point right now; you get your stop right down a little below this and you’re buying it at support, and then you’re going to be selling at resistance. Hopefully though, that resistance is not going to be 11.50, it’s going to wind up being up here and your resistance will come just from simple profit-taking as opposed to selling by folks who wish they hadn’t bought the stock.