*TA as of 17/3/24
Hi everyone! Today I’ll be covering one of the other chipmakers:
Marvell Technology, Inc. (NASDAQ: MRVL)
MRVL has been making a series of higher highs and higher lows (black trendline) since 2016. The trend has accelerated 3 times so far - 2020 (blue trendline), 2023 (pink trendline) and 2024 (purple trendline). It is currently trading in an ascending broadening wedge expansion pattern with higher highs and lows (purple trendlines). RSI is catching my attention with a possible hidden bullish divergence forming for the first time here, but more on that later.
Moreover, notice how we broke above but rejected the 78.6% extension at 80.99 - this price action is similar to the price action at the 61.8% extension at 70.89.
On the daily chart, we can see the expansion pattern in greater detail. I have reason to posit that MRVL has effectively found a local bottom. For one, we closed above the 66.24 pivot, which served as strong resistance from July 2024 until it was breached in late-January 2024. MRVL also has confluence with the ascending broadening wedge trendline, increased volume over the past 2 days within a fairly tight range, as well as hidden bullish divergence forming on RSI. This is indicative of accumulation. The next target for this markup is likely to be the next 2 major imbalance/resistance levels at 85.76 and 91.18.
Trendlines are not meant to be absolute and can see false breakdowns to retest supports further down. If we lose 66.24 then the next major level which was also S/R flipped recently is at 64.23, followed by the 50% extension at 63.80 and the 61.79 level which has still not seen any basing (i.e. we simply broke above this level without retesting it).
Another interesting thing I noticed was that MRVL is the only chipmaker that is yet to make new ATHs. The ones that I look at (NVDA, AMD, SMCI, TSM, LRCX, AVGO, MU etc.) have all made new ATHs. Patterns tend to repeat themselves - at one stage AMD was lagging but made new ATHs. TSM and MU lagged for even longer but eventually found momentum to make new ATHs. It is likely that MRVL will be no exception and will eventually see fresh ATHs above 93.85. The moment
Sentiment: BUY
Summary (with Price Targets - NFA):
Ascending broadening wedge expansion pattern with a measured move towards 91.18.
Holding the 66.24 pivot will be key, otherwise we could head towards 64.23 and lower - investors can start accumulating at current levels though.
MRVL is yet to make new ATHs, but fractals and patterns from all the other chipmakers suggest that we will eventually hit those levels.
Alright, that’s all from me. Till next time!
$Marvell Technology(MRVL)$ $Advanced Micro Devices(AMD)$ $NVIDIA Corp(NVDA)$ $SUPER MICRO COMPUTER INC(SMCI)$ $VanEck Semiconductor ETF(SMH)$
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