Marvell Technology (MRVL) reported its latest quarterly numbers Thursday evening and is lower in early Friday trading. So let's check on the charts.
Our last MRVL update was on July 29 where we recommended: "Stay long MRVL, but raise stop protection to $53 from $52. $64 and $71 are our new price targets."
In the daily bar chart of MRVL, below, we can see that the shares reached our $64 price target. Maybe some Real Money readers took some profits on MRVL. The shares were trading higher ahead of earnings. MRVL is above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line has been in an uptrend from late April and that helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside for a fresh buy signal.
In the weekly Japanese candlestick chart of MRVL, below, we see a positive-looking picture. MRVL has been in an uptrend as it trades above the rising 40-week moving average line.
The trading volume has been active but we can see some decline in volume over the past three months. The MACD oscillator is bullish and pointed higher.
In the daily Point and Figure chart of MRVL, below, we can see a potential upside price target of $75. A decline to $56.92 would probably weaken this chart.
Bottom-line strategy: MRVL could weaken Friday but if the selling is not real aggressive this pullback may be a buying opportunity. A lower shadow on a candlestick chart will be a positive development. Use a $56 sell stop on any remaining long positions.
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