Marvell Technology Jumps 12.32% In Two Days As Technicals Flash Bullish Signals

Marvell Technology (MRVL) shares surged 4.64% to $83.81 in the latest session, marking a two-day gain of 12.32% amid elevated trading volume. This analysis evaluates the technical posture through multiple frameworks.
Candlestick Theory
The latest two sessions formed consecutive bullish candles with high closes near session highs (80.09 and 83.81), suggesting strong buying momentum. This follows a hammer candle on 2025-09-23 (low: 74.02, close: 74.62) which indicated rejection of lower prices. Key support resides at $74.00-75.00 (recent consolidation zone) and $68.85 (August low). Immediate resistance sits at $84.50 (September 25 high), with major resistance at $90.74 (March 2025 peak). The breach of the $80.00 psychological barrier suggests bullish continuation potential.
Moving Average Theory
The 50-day SMA (approximately $72.30) and 100-day SMA (~$74.80) exhibit upward slopes, with the price trading decisively above both. Crucially, the 50-day crossed above the 200-day SMA (~$75.60) in early September, confirming a golden cross. This alignment signals strengthening intermediate-term momentum. Price action remains above all key SMAs, reinforcing the bullish trend structure.
MACD & KDJ Indicators
The MACD histogram shows accelerating bullish momentum, with the MACD line maintaining position above its signal line. However, the KDJ indicator (K: >85, D: >80, J: >95) reflects severely overbought conditions. While MACD supports continuation, KDJ's extreme readings suggest heightened susceptibility to short-term pullbacks. This divergence warrants caution despite the dominant uptrend.
Bollinger Bands
Price recently touched the upper Bollinger Band ($82.80, 20-day basis) during the volatility expansion, signaling strong upside momentum. The bands widened significantly after September's consolidation (bandwidth contraction), validating the bullish breakout. Current positioning near the upper band indicates near-term overextension, though band expansion may accommodate further gains if volatility persists.
Volume-Price Relationship
The rally was validated by substantial volume, with the two-day surge averaging 46.8 million shares – notably above the 30-day average. The highest volume day occurred during the August selloff (96.8 million shares), establishing conviction behind the $62.87 bottom. Current volume profile confirms accumulation during advances, supporting trend sustainability.
Relative Strength Index (RSI)
The 14-day RSI reads approximately 93, deep into overbought territory (>70). Historically, such extremes increase near-term pullback probability. However, context is critical: similar overbought RSI levels in June preceded further gains. This suggests waning marginal buying power but doesn't invalidate the uptrend.
Fibonacci Retracement
Applying Fibonacci to the $78.09 high (August 28, 2025) and $62.87 low (August 29, 2025):
- 23.6%: $66.46
- 38.2%: $68.69
- 50%: $70.48
- 61.8%: $72.27
- 78.6%: $74.82
The decisive breach above the 78.6% level ($74.82) and subsequent volume-backed rally indicate full retracement of the August decline, projecting a test of the $78-90 range.
Concluding Observations
Multiple indicators converge on a bullish intermediate-term trend: the golden cross alignment, Fibonacci retracement completion, volume-confirmed breakout, and MACD momentum. However, KDJ and RSI overbought extremes, coupled with Bollinger Band overextension, create near-term vulnerability to consolidation. Critical support is now established at $74.50-75.50 (confluence of Fibonacci 78.6% level and recent resistance-turned-support). Traders should monitor these levels for potential entry opportunities should the anticipated short-term cooling occur.