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Marvell Technology Group Ltd. (MRVL) was upgraded by TheStreet's Quant Ratings service. How does the chart look? In this daily chart of MRVL, above, we can see a saucer or rounded bottom formation from September to date. In September and October, there were gaps to the downside and heavy volume that suggests these are exhaustion gaps and represent the last liquidation into the bottom. Prices have since stabilized and MRVL is above the rising 50-day moving average. Prices are testing the 200-day average. The On-Balance-Volume (OBV) line has been rising for nearly three months and tells us buyers have stepped up their interest in this name. The Moving-Average-Convergence-Divergence (MACD) oscillator is in a bullish configuration.
This longer-term view of MRVL, above, is interesting as it shows a double top formation in the $16 to $17 area and a big decline. Prices have held and improved to test the 40-week moving average. We can see a recent uptick on the OBV line and a strong cover-shorts signal from the MACD oscillator. MRVL may fail to overcome the 200-day average on this first attempt. A bigger, broader base pattern would not be a bad thing for the future of MRVL