Marvell Technology Jumps 13% In 3 Days As Golden Cross Fuels Rally

Marvell Technology (MRVL) has demonstrated notable strength recently, with its most recent session showing a 5.37% gain, marking the third consecutive day of gains and a cumulative 13.04% advance over this period. This momentum warrants a thorough technical assessment.
Candlestick Theory
Recent price action reveals a decisive bullish reversal. The June 23rd session formed a hammer near $69.18 (low), indicating rejection of lower prices. This was followed by three consecutive white candles with higher highs/lows, confirming bullish conviction. Key resistance is established at $81.12 (June 26th high), while support lies near $75 (recent consolidation zone and June 24th low). A sustained break above $81.12 may target $85.
Moving Average Theory
The 50-day MA (currently ~$70) crossed above the 200-day MA (~$75) in late May, generating a "golden cross" that typically signals long-term bullish momentum. The current price ($80.01) trades above all key MAs (50/100/200-day), confirming a strong uptrend. The 50-day MA now acts as dynamic support, with the ascending 100-day MA (~$66) providing a secondary floor. This alignment suggests robust upward trajectory barring a breakdown below $70.
MACD & KDJ Indicators
The MACD histogram remains positive and above its signal line, reinforcing bullish momentum. However, its pace has moderated recently, hinting at potential consolidation. The KDJ oscillator shows the %K line (87) elevated near overbought territory, while %D (79) slopes upward but may face resistance. While not yet divergent, stretched KDJ levels suggest near-term exhaustion risk.
Bollinger Bands
Price currently tests the upper band (~$81), indicating near-term overextension. The bands expanded sharply during the June 18–24 rally, reflecting rising volatility. A contraction in bands now could precede consolidation. Support rests at the 20-period moving average (mid-band, ~$76). A close beneath the mid-band may signal short-term weakness.
Volume-Price Relationship
Volume surged 72% on June 18th (55.4M shares) during the initial breakout, validating upward momentum. Subsequent advances occurred on declining volume (e.g., June 26th volume at 33.5M vs. prior peaks), suggesting weakening participation. This divergence warrants caution; sustained rallies require volume confirmation to avoid reversals.
Relative Strength Index (RSI)
The 14-day RSI (~72) approaches overbought territory (>70) but lacks bearish divergence. Historically, MRVL has tolerated extended RSI peaks during strong trends. While not an immediate reversal signal, RSI >70 increases susceptibility to pullbacks. Traders should monitor for divergence or a break below 70 to gauge bearish momentum.
Fibonacci Retracement
Using the March 5th high ($90.74) and May 31st low ($53.78) as anchor points, key levels emerge:
- 61.8% retracement: $77.48 (recently breached resistance)
- 50% retracement: $72.26 (now support, aligning with MA convergence)
- 38.2%: $67.04 (major support)
The stock’s consolidation near $77.48 and subsequent surge past $80 indicates bullish resolve. The 78.6% retracement ($82.45) is the next technical target.
Confluence & Divergence Observations
Strong confluence exists at $75–$76 (50-day MA, Fibonacci 50%, mid-Bollinger Band), making it critical support. Multiple indicators agree on underlying bullishness (MA alignment, MACD, Fibonacci breakout). Key divergences include slowing volume during the latest rally and stretched KDJ/RSI readings, suggesting near-term consolidation or pullback risk. While long-term momentum favors upside, short-term traders should monitor $81 resistance and volume for sustainability signals. A decisive close above $82.45 could ignite the next leg upward, whereas failure at $75 may trigger profit-taking toward $72.26.