Marvell Technology Jumps 7.07% on Heavy Volume Extending Rally to 13.54% in Six Sessions

Marvell Technology (MRVL) surged 7.07% in the most recent session, marking its sixth consecutive daily gain with a cumulative 13.54% advance over this period. This rally, supported by significantly elevated volume (45.3 million shares), signals strong bullish momentum. The following technical analysis evaluates the stock's position using multiple frameworks.
Candlestick Theory
Recent price action shows a series of long green candles, culminating in a robust breakout above the psychological $80 resistance. The latest session formed a strong bullish candle with a high of $85.27 and close near its peak at $81.74, indicating conviction. Key resistance now shifts to the yearly high of $90.74 (2025-03-05), while the prior congestion zone near $72-75 establishes immediate support. A consolidation or pullback toward this area may offer entry opportunities.
Moving Average Theory
The 50-day MA ($76.21) recently crossed above the 100-day MA ($75.89), generating a bullish signal. Price trading above all three key moving averages (50/100/200-day) confirms a bullish trend structure. The 200-day MA ($70.35) slopes upward, reinforcing long-term support. Current price deviation above the 50-day MA (~7% premium) suggests short-term overextension, potentially inviting mean-reversion toward $78-79.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover with the histogram accelerating upward, affirming positive momentum. KDJ readings (K:82, D:79, J:88) indicate overbought territory, though such conditions can persist during strong uptrends. While KDJ hints at exhaustion risk, MACD divergence remains absent, supporting trend continuation near-term. Traders should monitor for bearish KDJ crossovers or MACD flattening as caution flags.
Bollinger Bands
Price touched the upper Bollinger Band ($85.08) on July 30, reflecting elevated volatility and bullish momentum. Bandwidth expansion from recent contraction (July lows) validates the breakout. Closing near the upper band suggests continuation potential, though sustainability requires volume confirmation. A retreat toward the 20-day moving average (mid-band at $78.40) would be a healthy consolidation.
Volume-Price Relationship
The breakout was validated by the highest volume in 60 days (45.3M shares vs. 30-day avg ~20M), signaling institutional participation. Volume expanded progressively during the 6-day rally—particularly on up days—underscoring accumulation. However, the spike to 45M shares may indicate a near-term climax; follow-through volume on advances is now critical to sustain momentum. Declining volume on pullbacks would support bullish continuation.
Relative Strength Index (RSI)
The 14-day RSI (68) approaches but has not breached the overbought threshold (70). This positions MRVL with moderate upside momentum without immediate overheating concerns. RSI’s higher lows since late June diverge positively against price consolidation, implying strengthening underlying momentum. Nevertheless, a surge above 75 would warrant heightened caution for pullback potential.
Fibonacci Retracement
Applying Fib levels to the April-June decline (high: $90.74; low: $60.19):
- The 61.8% retracement ($79.52) was decisively breached on high volume.
- 78.6% resistance at $84.32 nearly aligns with the July 30 high ($85.27).
- The breakout above $79.52 now converts this level to primary support. A pullback holding above $79.50 would be structurally bullish, targeting the swing high at $90.74.
Confluence & Divergence Observations
Confluence: Multiple indicators align around $76-80 as critical support. The 50-day MA ($76.21), Fibonacci 50% level ($75.46), and prior resistance-turned-support near $75 create a high-probability demand zone. Volume-backed defense here would offer favorable risk/reward for new longs.
Divergence: KDJ’s overbought reading contrasts with RSI’s neutrality, though no decisive bearish divergence exists. MACD strength offsets KDJ’s warning. The absence of volume divergence during the breakout remains a key positive.
In summary, Marvell Technology exhibits robust technical strength, backed by volume and multi-indicator confirmation. While short-term overextension risks a consolidation near $79-82, the overall structure favors upside continuation toward the $85-90 range. Traders might await pullbacks toward confluent support near $77-79 for entry, with a close below $71.50 (June swing low) invalidating the bullish thesis.