Marvell Technology Extends Rally With 6% Three Day Gain On Bullish Momentum

Marvell Technology (MRVL) rose 3.13%, extending gains for the third consecutive day, with a 6.00% increase over the past three days. The stock closed at $88.92 after trading between $88.25 and $90.25 on above-average volume, positioning it near the upper boundary of its recent range. This price action occurs against a backdrop of significant volatility over the past year, which saw swings from a low of $47.09 (April 2025) to a high of $127.20 (February 2025).
Candlestick Theory
The recent sessions show a series of bullish candles, including three consecutive white candles with higher highs and higher lows. The current rally from the $80.09 support level (September 24) formed a bullish reversal pattern following the hammer candle on September 24. Immediate resistance is evident at $90.25 (October 6 high), while key support resides at $85.08 (October 3 low), reinforced by the September rally’s consolidation zone. A decisive close above $90.25 may trigger further upside targeting the $96–$98 resistance area.
Moving Average Theory
The 50-day MA (~$78.30) crossed above both the 100-day MA (~$72.10) and 200-day MA (~$68.50) in late August, confirming a bullish long-term trend structure. The current price trades 13% above the 50-day MA, demonstrating strong momentum. The ascending alignment of the 50-day > 100-day > 200-day MAs establishes dynamic support near $82–$85 and reinforces the prevailing uptrend.
MACD & KDJ Indicators
The MACD (12/26/9) shows a bullish crossover in late September, with the histogram printing progressively higher bars. Current MACD values remain in positive territory, though divergence is not observed. The KDJ oscillator’s %K (87) exceeds the %D (83), indicating strong near-term momentum. Both oscillators approach overbought territory (KDJ >80), but their upward slopes suggest continued bullish control. Confluence exists with the MACD’s sustained uptrend and KDJ’s positive crossover.
Bollinger Bands
Bollinger Bands (20-day) expanded sharply during the late-September volatility, with the current upper band at ~$89.50. Price hovers near the upper band after closing above the 20-day SMA (~$84.20), reflecting bullish momentum and directional conviction. The bandwidth expansion following the September consolidation (bandwidth contraction) signals renewed directional strength. Sustained trading above the middle band confirms the short-term bullish bias.
Volume-Price Relationship
Volume surged during the September 24–25 rally (+115% above average), signaling capitulation and accumulation. Recent sessions show ascending volume on upward days (October 2–6), confirming buying interest. This volume profile contrasts notably with the distribution patterns observed during the July–August decline, supporting trend sustainability. The current breakout above $88.25 occurred on volume 28% higher than the 20-day average, adding validity.
Relative Strength Index (RSI)
The 14-day RSI reads 89, significantly above the overbought threshold (70) following the three-day rally. Historically, RSI levels above 85 preceded minor pullbacks in June and August, though the indicator can remain elevated during strong trends. Caution is warranted given the extreme reading, but its warning nature is balanced by confirmation from other momentum tools. Traders should monitor for bearish divergence or a reversal below 70 to signal exhaustion.
Fibonacci Retracement
Using the February 2025 high ($127.20) and April 2025 low ($47.09), key retracement levels are: 38.2% ($96.60), 50% ($87.14), and 61.8% ($77.69). The current price holds above the 50% retracement level ($87.14), converting it to support. This coincides with candlestick and moving average support zones, creating a confluence floor. The next major upside targets align with the 38.2% level ($96.60) and psychological $100 barrier.
Confluence is observed at the $85–$88 support zone, where Fibonacci, moving averages, and volume-based accumulation converge, while overbought RSI and upper Bollinger Band levels suggest potential near-term consolidation. No material divergences exist among trend-following indicators, supporting the primary bullish structure. The weight of evidence indicates upside continuation toward $96.60–$100 is probable following consolidation, though a close below $85.08 would invalidate the near-term breakout thesis.