Marvell Technology Surges 4.02% as Bullish Engulfing Pattern Breaks Resistance, Backed by Moving Averages

Marvell Technology (MRVL) closed the most recent session with a 4.02% increase to $92.47, breaking above a prior resistance level at $92.47 established on December 9. This move coincides with a bullish engulfing candlestick pattern, suggesting short-term buying momentum. Key support levels are identified at $88.90 (December 9 close) and $88.04 (December 8 low), while resistance aligns with the recent breakout at $92.47. The price action indicates a potential continuation of the upward trend, though a pullback to test the $88.90 support could confirm its validity.


Moving Average Theory
The 50-day moving average (approximately $85.00) and 200-day moving average (around $75.00) both sit below the current price, reinforcing a bullish bias. The 100-day moving average (~$80.00) further confirms the upward trajectory. The 50-day and 200-day lines have been converging over the past month, suggesting a potential shift in trend strength. A crossover above the 50-day MA would solidify the short-term bullish case, while a break below the 200-day MA could signal a deeper correction.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the MACD line crossing above the signal line, indicating strengthening upward momentum. The KDJ (Stochastic) indicator shows %K at 85 and %D at 78, placing the stock in overbought territory. However, the recent surge in volume (22.57 million shares) supports the sustainability of the rally. A divergence between rising prices and declining %K could foreshadow a reversal, but for now, the indicators align with continued bullish momentum.
Bollinger Bands

The price has recently touched the upper Bollinger Band, reflecting elevated volatility. The bands have been widening since late November, consistent with a breakout phase. If the price remains above the 20-day moving average within the bands, the trend is likely to persist. A close below the middle band would suggest increased caution, while a sustained move above the upper band could target $95–$98.
Volume-Price Relationship
Trading volume spiked to 22.57 million shares on the recent rally, a 15% increase from the prior session. This surge validates the strength of the price move. However, volume has been mixed over the past week, with some sessions showing lower participation. A continuation of high-volume buying would reinforce the bullish case, while a divergence (rising price with declining volume) could signal weakening conviction.
RSI
The 14-day RSI stands at 70, indicating overbought conditions. While this is a cautionary signal, the RSI has remained above 50 for most of December, reflecting a strong uptrend. A pullback to the 60–65 range would be a healthier scenario for sustained momentum. A drop below 50 could trigger a short-term correction, but the overall trend may remain intact if the RSI holds above 40.
Fibonacci Retracement
Applying Fibonacci levels to the December 3–January 31 range ($61.57–$115.79), the 38.2% retracement level aligns with the current price near $92.47. A successful hold above this level could target the 50% retracement at $90.60 and ultimately the 61.8% level at $87.50 as support. Conversely, a breakdown below $90.60 would suggest a test of the 50% level and potentially the 38.2% retracement at $84.40.

Confluence and Divergences
The strongest confluence occurs between the moving average crossover, bullish candlestick pattern, and strong volume, all supporting an upward bias. However, the overbought RSI and KDJ readings highlight a risk of short-term profit-taking. Divergences are minimal at present but warrant monitoring, particularly if volume fails to confirm further price gains. Probabilistically, the setup suggests a 60–70% chance of a consolidation phase after the recent breakout, followed by a resumption of the upward trend if key supports hold. Traders should prioritize liquidity at $88.90 and $92.47 while managing risk through stop-loss placements below $88.04.