Marvell Technology Group Ltd. (MRVL) was mentioned during the Lightning Round by Jim Cramer on his Mad Money show - "If fundamentals matter, this is a buy. But fundamentals are not mattering much right now." Let's put the fundamentals aside and take a look at the charts and indicators.
In this daily bar chart of MRVL, below, we can see how the decline in this name gained speed in the last few months. Prices are trading below the declining 50-day moving average line and the bearish 200-day line. The daily On-Balance-Volume (OBV) line is not moving lower with the price action - it has been making a bullish divergence and suggests that investors have been accumulating it on weakness. The Moving Average Convergence Divergence (MACD) oscillator has been in a bearish mode since August when it moved below the zero line.
In this weekly bar chart of MRVL, below, we can see our prices and indicators moving in the same direction. Prices are below the declining 40-week moving average line. The weekly OBV line has moved lower for the past four months. The weekly MACD oscillator is bearish.
In this Point and Figure chart of MRVL, we can see that prices have reached a downside price target. Prices could hold around current levels but a rally will need some signs of accumulation and basing.
Bottom line strategy: the decline in MRVL could be nearing an end, but plenty of base building is needed before a new uptrend could develop. Stand aside.