Marvell Technology Surges 3.40% as Bullish Candlestick Patterns and MACD Crossover Signal Potential Rebound from 84.29 Support

Candlestick Theory
Marvell Technology’s recent price action reveals a bullish bias, with a 3.40% gain in the latest session and two consecutive up days. The candlestick pattern formed near the 84.29 support level (a prior low) suggests a potential reversal after a brief pullback, supported by a doji-like structure on December 16, indicating indecision.

Key support levels are identified at 84.29, 81.7, and 76.68, while resistance is clustered around 87.35, 89.43, and 92.47. A breakdown below 84.29 could target 81.7, whereas a breakout above 87.35 may test the 89.43 psychological level.
Moving Average Theory
The 50-day MA (calculated from the 1-year dataset) sits at ~84.5, while the 200-day MA is approximately 78.3. The current price of 87.68 suggests the short-term trend (50 MA) is above the long-term (200 MA), indicating a bullish bias. However, the 100-day MA (~83.2) is approaching convergence with the 50-day MA, which may signal a potential slowdown in upward momentum. A close below the 50-day MA could trigger a retest of the 81.7 support, whereas a move above 90 would confirm a stronger uptrend.
MACD & KDJ Indicators
The MACD line has crossed above the signal line, forming a bullish crossover, suggesting momentum is building. The KDJ stochastic oscillator shows K at 78 and D at 65, indicating overbought territory but not yet extreme (K < 80). This suggests caution, as a pullback may occur before a new leg higher. Divergence is observed between the RSI and KDJ: while RSI is near overbought levels, KDJ remains within neutral territory, implying mixed signals for immediate reversal.
Bollinger Bands
Volatility has expanded recently, with the 20-day Bollinger Bands widening to ~4.5 range. The current price of 87.68 is near the upper band, suggesting overbought conditions and a potential consolidation phase. A breakdown below the middle band (~86.0) would align with increased volatility and signal a possible short-term correction. The band contraction observed in early December (e.g., December 5) historically preceded a sharp rebound, suggesting similar dynamics may recur.
Volume-Price Relationship
Trading volume has surged on recent gains, particularly on December 23 (11.38M shares) and December 10 (22.57M shares), validating the upward move. However, the volume on December 23 was lower compared to the December 10 rally, which may indicate weakening conviction. A divergence between price and volume—where volume declines despite higher prices—could signal a potential exhaustion of the bullish trend.
Relative Strength Index (RSI)
The RSI has reached ~70, entering overbought territory, though it remains below the critical 75 threshold. This suggests caution rather than an immediate reversal. A sustained close above 88.05 may push RSI into overbought extremes, increasing the risk of a pullback. However, the RSI’s recent divergence with price (higher highs in price but not RSI) hints at potential exhaustion.
Fibonacci Retracement
Applying Fibonacci retracement to the December 10 high (92.47) and subsequent low (81.7), key levels are identified at 86.2 (38.2%), 89.4 (61.8%), and 92.47 (100%). The current price of 87.68 is near the 38.2% retracement level, which has historically acted as a minor resistance. A break above 89.4 (61.8%) would target 92.47, while a failure to hold above 86.2 may retest 81.7.
Confluence and Divergences
Confluence is observed between the MACD crossover, bullish candlestick patterns, and volume confirmation, suggesting a high probability of continued upward momentum. However, divergences between RSI and KDJ, along with the RSI’s overbought status, caution against overextension. A pullback to test 84.29 support (aligned with the 50-day MA) may offer a better entry point if the trend holds.