Marvell Technology Drops 3.61% Amid Bearish Technical Signals And Rising Volume

Marvell Technology (MRVL) has experienced notable downward pressure recently, declining 3.61% on August 15, 2025, to close at $76.19. This marked its second consecutive daily loss, resulting in a 3.95% two-day drop. The stock traded between $76.17 and $79.42 during the session, with above-average volume of 13.18 million shares. This extended pullback follows the July 30 peak of $85.27, which represented a significant recovery from April's $49.38 low.
Candlestick Theory
Recent sessions show bearish confirmation patterns. The August 15 candle closed near its low after rejecting the $79.42 resistance, forming a bearish engulfing pattern when combined with August 14’s decline. The $79.42–$80.00 zone now acts as robust resistance, supported by multiple failed breakout attempts. Critical support emerges at $74.45 (August 1 low), reinforced by the psychological $75 level. A close below $74.45 could accelerate selling pressure.
Moving Average Theory
The 50-day SMA ($72.50) and 200-day SMA ($65.20) maintain upward slopes, confirming the broader uptrend. However, the price has breached the 20-day SMA ($78.80), signaling near-term weakness. The flattening 10-day SMA ($77.80) suggests consolidation, with the 50-day SMA likely to provide dynamic support. A death cross between the 10-day and 20-day SMAs may develop if losses persist.
MACD & KDJ Indicators
MACD (12,26,9) exhibits a bearish trajectory with the histogram in negative territory for seven consecutive sessions. The signal line divergence implies strengthening downward momentum. Meanwhile, KDJ (9,3,3) shows the %K line (23) plunging below %D (42), entering oversold conditions. While KDJ’s oversold reading typically precedes reversals, the MACD’s persistent bearishness suggests caution.
Bollinger Bands
Price contraction dominates, with bands narrowing to a width of $7.50 (from $9.80 two weeks prior). The current close near the lower band ($75.50) indicates oversold conditions. Historically, similar squeezes preceded volatility expansions – the July 30 breakout above bands triggered a 7.07% rally, while the current test of the lower band may prompt either a rebound or breakdown. A sustained close below $75.50 would indicate bearish conviction.
Volume-Price Relationship
Distribution patterns are evident. The August 15 decline occurred on 13.18M volume – 30% above the 30-day average – confirming bearish conviction. Notably, the August 1 breakdown at $74.45 featured extreme volume (28.88M shares), establishing a high-volume support node. Conversely, the July 30 rally saw 45.53M shares, suggesting institutional accumulation. Any rebound attempt requires volume exceeding 15M shares for validation.
Relative Strength Index (RSI)
The 14-day RSI (39) has descended from overbought territory (>70 on July 30) but remains above oversold thresholds. This neutral positioning leaves room for further downside before reaching reversal-signaling levels. Bearishly, RSI’s lower high since July 30 contrasts with price’s higher high on August 12, creating a negative divergence that foreshadowed the current correction.
Fibonacci Retracement
Applying Fibonacci to the April 21 low ($49.38) and July 30 high ($85.27): The 23.6% retracement ($76.97) failed to hold on August 15, converting it to resistance. Next support aligns at the 38.2% level ($70.42), converging with the 100-day SMA and the psychological $70. A deeper retracement to the 50% level ($67.32) remains possible if $74.45 support breaks, though the overall uptrend would remain intact.
Confluence and Divergence Observations
Strong confluence exists at $74.45–$75.00, combining the August 1 swing low, volume-weighted support, and the 50-day SMA. Multiple indicators agree on near-term oversold conditions, including Bollinger Band position, KDJ levels, and Fibonacci alignment. Key divergence appears between MACD (bearish momentum) and RSI (neutral positioning), suggesting unresolved directional tension. A break below $74.45 would align all indicators toward deeper correction targets near $70.42. Probabilities favor range-bound consolidation between $74.45–$79.50 until volatility expands, with the broader uptrend unlikely to reverse without a decisive close below the 38.2% Fibonacci level.