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Marvell Technology Group Ltd. (MRVL)

MRVL stock forecast: buy or sell

Close on Oct 23rd, 2020
$41.43 +0.95%
3 months performance
17.00%
Published: October 23rd, 2020 - 5.23pm EDT

MRVL stock outlook

  • Marvell Technology stock barely changed 0.95% to close at $41.43 on the stock market today, and broke a streak of 3 sessions in green.
  • From the chart point view, price is drawing a scaled uptrend since mid-August with higher tops and higher bottoms. Up to date, the uptrend made a 27.56% profit since the beginning of this rally
  • KeyCorp posted a bullish rating for Marvell Technology on Tuesday, with a target of $55.00
  • Marvell Technology Group Ltd. designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.

Important note:
The thoughts written in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not have an understanding of the individual circumstances of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for general educational reasons only

MRVL stock charts

Should I buy Marvell Technology stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $MRVL stock a buy?

Currently, Marvell Technology stock matches one trading strategy:

Uptrend buy setup

Marvell Technology stock continues to trend higher since in mid-August and has marked an amazing 27.56% gain. Price marked a pull back in this uptrend at $39.84 yesterday, and since then it bounced off a 3.99%. Breaking out above $45.04 - it's last top - will be a good entry point if Marvell Technology resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $40.54

Buy setupBuy pointStop lossRisk
Uptrend buy setup$45.04$40.5410%

Should I sell Marvell Technology stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies prevent us from making impulsive decisions based on our personal moods or the noise that surrounds the market. We like very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies should not be used for selling short Marvell Technology stock

As a rule of thumb, you should never mantain an investment that results in higher than expected losses at the time of the buy. The timing to sell shares always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Marvell Technology stock?

In the current situation of Marvell Technology there is not any eligible sell setup, so Marvell Technology stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Marvell Technology stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 14 brokerage ratings were published for Marvell Technology. General sentiment is bullish, with 10 out of 14 publishing optimistic outlooks

Marvell Technology ratings

Brokerage firmRating
Oct 2nd, 2020
Credit Suisse Group Buy
Oct 2nd, 2020
CSFB Buy
Oct 5th, 2020
B. Riley Strong buy
Oct 6th, 2020
UBS Group Strong buy
Oct 7th, 2020
Rosenblatt Securities Strong buy
Oct 9th, 2020
Benchmark Strong buy
Oct 9th, 2020
BMO Capital Markets
Oct 9th, 2020
Citigroup Neutral
Oct 9th, 2020
Cowen
Oct 9th, 2020
Craig Hallum Strong buyNeutral
Oct 9th, 2020
Deutsche Bank Strong buy
Oct 9th, 2020
Needham & Company LLC Strong buy
Oct 9th, 2020
Oppenheimer Buy
Oct 20th, 2020
KeyCorp Buy

Technical analysis

Marvell Technology stock started an uptrend in mid-August, and grew an amazing 27.56%. During this uptrend, the price provided some entry points on the breakouts. Latest pullback was yesterday, when price bounced at $39.84. Currently, it moves in a consolidation between its last top ($45.04) and its last bottom ($39.84)

SMAs overview

Moving averages are simple indicators for investors to gauge momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Learn more about Moving Averages from sources like Wikipedia and Investopedia

MRVL SMAs chart

Supports and resistances

Technical analysts use supports and resistances as a way to spot price points in the stock price action that tend to behave as glass ceiling, containing the price of an asset to move up or down. Supports are levels where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue descending until meeting another support level. On the contrary, resistance levels are where the price may find resistance as it moves up. Again, the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will climb easily until it hits the next resistance

The current resistance levels are:

  • R1: $45.04 (8.71% above)
  • The current support levels are:

  • S1: $41.28 (-0.36% below)
  • S2: $39.84 (-3.84% below)
  • S3: $39.34 (-5.04% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. It is composed of three bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    MRVL RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and historical weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on October 12 after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 52.78. Marvell Technology stock dropped a 7.32% since RSI lost the overbought zone

    MRVL RSI chart

    Earnings and financials

    Marvell Technology ($MRVL) hosted the shareholders call and released the fiscal 2nd-quarter report in late August. The company posted adjusted EPS that slightly uplifted Wall St. expectations. Quarterly EPS was $0.21 per share compared to the forecasted $0.20.

    Same quarter last year, reported EPS was $0.21, so recently reported EPS means 0%.

    MRVL ($MRVL) is posting Q3 financial report on early next December. Wall Street estimates Earnings per Share of $0.25, compared to Q2 that made $0.21.

    MRVL revenues and profits chart