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Marvell Technologies Is Pulling Back

NASDAQ:MRVL   Marvell Technology, Inc
Marvell Technologies has been one of the better-performing chip stocks this year. It’s up 52 percent in 2020, while the Philadelphia Semiconductor Index has gained just 28 percent.

MRVL broke out in May, well before most others. It spent the next four months in a long consolidation pattern, grinding higher but not really breaking out. That is, until ripping through a falling trend line on September 28. The stock proceeded to run almost 20 percent before losing momentum. It’s now pulling back and may provide an entry in the next week or so.

The key area to watch could be roughly $38.70 - $39. That’s important because it’s roughly the location of the 50-day simple moving average ( SMA ).

It was also an intraday high several times September 18-23. MRVL then bounced near that level on September 30, immediately after breaking out. Old resistance became new support. Here's the hourly:

Beneath that, $37 could be important. That was the high in early June and a low as late as September 24.

Fundamentally, the story focuses on 5G networking and cloud computing. MRVL’s next set of numbers are due in early December.

Again, short-term momentum looks bearish . But now could be the time to start setting alerts and planning.

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