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- 1 MRVL stock price is up by 5.05% in the last trading session and is currently trading at $27.03.
- 2 Marvell Technology stock experienced an earnings effect recently and opened a gap of 5% which triggered panic selling, causing the price to drop by another 5%.
MRVL stock price has been volatile with major ups and downs in the past 3 months. The price had been in a declining trend until the end of year 2022. However, the bulls started accumulating from the very start of the year 2023, and the price bottomed out from a low of $33.75 to shift its trend toward a bullish one for the year.
The last quarterly results pushed the price 24% higher due to the gap-up opening, followed by another 11% gain in the Intraday session. Subsequently, the price became volatile and consolidated for the whole quarter in a range with resistance at $68 and support at $57.
Marvell Technology Inc. (MRVL Stock) declared its quarterly results on Thursday, 24th August 2023, which caused the stock price to decline by 10%, followed by a gap down-decline of 11% more, which led to the breakdown of a previous support at $56.
Marvell’s earnings fell 42% to 33 cents a share, while revenue dropped 12% to $1.34 billion. However, the results outperformed the expectations of Wall Street. The company’s growth is driven by AI and cloud infrastructure, said CEO Matt Murphy. He also raised the AI revenue outlook as demand strengthens.
The price tried to recover on Monday and closed with an intraday gain of 3.12%, forming a new swing low. Now, the analysts are cautious as the breakdown of the swing low may trigger a panic and the stock may experience a fall till the previous support zone.
MRVL stock option-chain analysis shows that the current implied volatility in the market is 38.3% with a decrease of 1.43% in the last trading session. The at-the-money strike price has 3900 open contracts on the put side and 2328 open contracts on the call side, indicating the dominance of buyers at the current level. The PUT/CALL ratio is 1.07, indicating that neither side is dominant at the moment as per the data.
MRVL Stock Price Shows Breakdown Due to Gap-down Opening
The short-term outlook for the stock is neutral to mild bullish until the price remains above the recent swing low. The breakdown of this level may invite sellers to enter the market and drag the price down to fill the gap that is created.
The EMAs Indicate Weakness in The Short Term
The daily MRVL stock price chart shows that the price is trading above the 200 EMA, indicating a strong uptrend in the long term. However, the stock price could not sustain above the 50 EMA, indicating sellers’ domination in the short term.
The overall Technical Opinion rating including the RSI and MACD, is signaling a 40% buy, with the weakest short-term outlook on maintaining the current direction.
Conclusion
MRVL stock price was volatile and consolidated in a range after rising from $33.75 to $68. The quarterly results beat expectations but the price fell 21% due to a gap down. According to the CEO, both the growth in AI and cloud-related activities have shown strength. As a result of this positive performance, the company’s outlook has been raised. The price recovered 3.12% on Monday and formed a new low. The analysts are cautious and expect the price to be neutral or mildly bullish above the low.
Technical Levels
- Support levels: $46.4 and $41.6.
- Resistance levels: $57.28 and $63.19.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
