Marvell Approaching Price Target Following Data Center Surge
The software company has seen significant grow in its data center sales and we're projecting a price target.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Marvell Technology MRVL just reported a non-GAAP EPS of $0.30 which beat estimates by $0.01, and top-line revenue of $1.27 billion which beat by $20 million. Share prices are trading nearly 10% higher than Thursday's close. In the second quarter, it saw a 92% surge in data center sales compared to the same quarter last year.
Let's review the charts and indicators.
In this daily bar chart of MRVL below, I can see that prices made a new high for the current move higher and broke above the highs of the last three months. Prices are trading above the bottoming 50-day moving average line and above the rising 200-day line. The trading volume has been more active since March. The daily On-Balance-Volume (OBV) line has been improving since December. The Moving Average Convergence Divergence (MACD) oscillator has recently moved above the zero line after several months oscillating around it.
In this weekly Japanese candlestick chart of MRVL below, I see a mixed picture. Prices have moved higher in the past two years but it has been a struggle with some serious corrections. The weekly volume histogram shows only a steady picture of volume and not an increasing pattern. The weekly OBV line has weakened over the past three years and that is definitely not bullish. The MACD oscillator has been correcting lower since March and is only slightly above the zero line.
In this daily Point and Figure chart of MRVL below, I can see today's upside move and a price target in the $100 area.
In this weekly Point and Figure chart of MRVL below, I can see an upside price target of $129 but a trade at $86 or higher is needed to refresh the uptrend.
Bottom line strategy: Back on June 18, I recommended that "MRVL may continue to trade sideways so I would prefer to go long on strength above $79 instead of sitting and waiting for a move higher. Risk to $69 after going long above $79. The $110 area is my price target for now."
Prices briefly touched $79 today, so wait for it.
Employees of TheStreet are prohibited from trading individual securities.