For his second "Executive Decision" segment of Mad Money Thursday evening, Jim Cramer spoke with Matt Murphy, president and CEO of Marvell Technology Group Ltd. (MRVL) , the semiconductor maker that just completed its annual briefing with analysts.
Murphy said that Marvell has undergone a remarkable transformation over the past few years, evolving from a hard disk and storage provider into one that has a foothold in the three hottest areas of tech, 5G wireless, the cloud and automotive. Marvell sees a total market of $110 billion, he said, but currently only addresses $20 billion of that potential.
Let's check out the latest charts and indicators of Action Alerts PLUS holding MRVL.
In the daily bar chart of MRVL, below, we can see that prices made a triangle formation in September and broke out to the upside from this pattern. Trading volume increased from late September into October, which chart watchers like to see. Also, the On-Balance-Volume (OBV) line made a new high for the move up to confirm the price gains.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from above the zero line for a fresh outright buy signal.
In the weekly bar chart of MRVL, below, we can see a strong longer-term picture. Prices have been rallying since March and stand above the rising 40-week moving average line.
The weekly OBV line has not moved in the right direction to confirm the price action but the daily line tells a different story. The MACD oscillator is bullish.
In this daily Point and Figure chart of MRVL, below, we can see a relatively close price target of $46 being projected.
In this weekly Point and Figure chart of MRVL, below, we can see a longer-term target of $57 being forecast.
Bottom-line strategy: In the middle of September we noted that MRVL had a risk of a downward correction but weakness really did not materialize and prices soon soared to new highs. Longs should raise stop protection to a close below $38. Our price targets are $46 and $57.