MRVL has pulled back to its bullish 260-day moving average
Semiconductor stock Marvell Technology Inc (NASDAQ:MRVL) is up 2.7% to trade at $88.13 at last glance, brushing off today's headwinds, though it was earlier on track for its seventh loss in nine days. A short-term bounce stock back up toward its Jan. 23 all-time high of $127.48 could also be in the cards, as the equity is flashing a historically bullish signal on the charts.
Per Schaeffer's Senior Quantitative Analyst Rocky White, MRVL has pulled back to its 260-day moving average. Specifically, the stock is within 0.75 of the trendline's average true range's (ATR), or 20-day ATR, for the first time in at least eight of the past 10 trading days, after spending at least 75% of the last six months above it.
Marvell Technologies stock has seen five similar signals over the past three years, after which it was higher one month later 80% of the time, with an average 11.6% gain. From its current perch, a similar move would push the security back up near $95.
Furthermore, MRVL's 14-day relative strength index (RSI) of 22.5 stands in "oversold" territory, which is typically indicative of a short-term bounce. Year over year, the equity is up 11%.