We reviewed the charts of Marvell Technology (MRVL) on December 3 and wrote that "I have no problem with traders who might be taking profits today on the gap higher as MRVL reached our $83 price target. Hold remaining longs but raise stops to $69 from $56. The $125 area and then $150 are our new price targets."
Let's check the charts again and see how this trade is progressing.
In this daily bar chart of MRVL, below, we can see how prices made a correction of the early December strength. The pullback has been orderly and traders have used the dip to buy - notice the upturn in the On-Balance-Volume (OBV) line recently? The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line but recently crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of MRVL, below, we see a strong longer-term picture. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line shows a strong advance from March. The MACD oscillator is very bullish in this time frame.
In this daily Point and Figure chart of MRVL, below, we can see a potential downside price target in the $76 area.
In this weekly Point and Figure chart of MRVL, below, the software now suggests the $167 area as a potential price target.
Bottom line strategy: Traders could raise stops to $75 from $69. Our price targets are now the round number of $100, $125, $150 and then $167.
