Marvell Technology Jumps 4.9% As Technicals Signal Bullish Breakout

Marvell Technology (MRVL) rose 4.90% in the most recent session, closing at $68.35 after trading between $66.31 and $69.78. The analysis below synthesizes key technical perspectives based on historical price data.
Candlestick Theory
The June 6 bullish candle (4.90% gain) closed near its high of $69.78 after testing support at $66.31, signaling strong buying momentum. This follows a hammer-like pattern on June 4 (6.32% rebound from $61.86), suggesting a near-term reversal after the May 30 sell-off. Immediate resistance is $69.78, aligning with the March 11 peak of $69.00. Support holds at $66.31 (June 6 low), backed by the 200-day moving average confluence. A break above $69.78 may target the $72.28 March 6 swing high.
Moving Average Theory
The 50-day MA ($63.20 approx) crossed above the 100-day MA ($62.50 approx) in early June, confirming a bullish short-term trend. The current price ($68.35) trades above both, reinforcing upside momentum. However, the 200-day MA ($71.80 approx) caps upside—a critical resistance level last tested in March. This configuration suggests intermediate-term strength but persistent long-term overhead pressure. Sustained trade above the 200-day MA would signal a structural trend reversal.
MACD & KDJ Indicators
MACD shows a bullish crossover, with the histogram expanding positively since June 3, reflecting accelerating upward momentum. KDJ’s %K (86) and %D (79) are overbought but not diverging, supporting near-term bullishness. However, KDJ’s overbought reading advises caution; a consolidation or pullback may develop if momentum stalls. The convergence of these oscillators currently favors upside continuation unless MACD flattens.
Bollinger Bands
Price rebounded sharply from the lower Bollinger Band ($60.19, May 30) to the upper band ($69.78, June 6), compressing the bands after mid-May volatility expansion. This compression often precedes directional breaks. The close near the upper band signals strength, but a rejection here could retest the 20-period midline ($65.50 approx). Band expansion on a confirmed breakout above $69.78 would validate upside continuation.
Volume-Price Relationship
Volume surged 15% above average during the June 4 advance (6.32% gain), lending credibility to the breakout. The June 6 follow-through occurred on slightly lower volume (-2% vs. prior day), introducing minor distribution concerns. Accumulation patterns dominate since early June, with higher volume on up days versus down days (e.g., June 4: 27M shares vs. June 3: 19.3M). This suggests institutional participation supporting the rally.
Relative Strength Index (RSI)
The 14-day RSI (74) is overbought but trending upward, reflecting robust momentum. While >70 typically warns of overheating, RSI can remain elevated in strong trends. Bearish divergence would only materialize if price makes new highs while RSI reverses. Given the absence of divergence, the overbought condition may delay but not invalidate upside.
Fibonacci Retracement
Using the March 5 high ($90.14) and April 21 low ($49.38), key retracement levels include 50% ($69.76) and 61.8% ($74.49). The current price tests the 50% level ($69.76), which converges with the June 6 high ($69.78). This zone is critical resistance; a decisive close above $69.80 would open a path toward $74.49. The 38.2% level ($65.03) now acts as support, reinforced by the June 5 low ($64.81).
Confluence and Divergences
Confluence exists at $69.76–69.80 (Fibonacci 50%, swing high, and Bollinger resistance), making it a decisive level for directional bias. Agreement among moving averages (bullish cross), volume (accumulation), and oscillators (MACD/KDJ momentum) reinforces near-term upside potential. The lone divergence is RSI’s overbought signal against unbroken price strength—a secondary caution. Should price clear $69.80 with expanded volume and Bollinger band expansion, the $72.28–74.49 zone becomes probable. Conversely, failure here may trigger profit-taking toward $65.03–66.31 support.