Jim Cramer recently highlighted Marvell Technology (MRVL) as one of 10 companies that could be acquired in 2017. Jim said Western Digital (WDC) or Seagate Technology (STX) seem like the most likely Marvell buyers, adding that "I can't believe this one hasn't happened yet."
I don't have any knowledge of any potential deal in the works, but as a reader of charts I can see that investors have been aggressive buyers of MRLV since late 2015. More investigation into the charts and indicators should be interesting.
Looking at this daily bar chart of MRVL, above, we don't have much to complain about if we went long anywhere in the past 12 months, aside from the highs of last month. MRVL is positioned above the rising 50-day and 200-day simple moving average lines.
The On-Balance-Volume (OBV) has been moving up all year with a stronger kicker starting in July. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since mid-July and recently crossed to a take profits sell signal.
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In this three-year weekly chart of MRVL, above, we can see that prices are above the rising 40-week moving average line. The weekly MACD oscillator remains in a bullish configuration. This strong weekly chart supports the positive daily chart.
In this long-term Point and Figure chart of MRVL, above, we see a very large potential base pattern. The key levels to prompt breakouts are $16.72 and then $20.52. Because a Point and Figure chart is not driven by time we have no sense of timing.
An upside breakout should yield us price targets in the mid-$30s. Not bad.
