Marvell Technology Inc (MRVL)

[Chart Reader]

MRVL chart update

MRVL did have a small breakout today when it closed above the 12.04 level. Nontheless, it is facing a stiff resistance level at the previous weekly closing high at 12.76. If you are just looking at the daily chart, you may think that a close above that level is a breakout, but no, it isn't. Back in June 24th 2004, the stock had a weeky closing high at 13.15 and that close will not only come into play but will likely cause the traders that buy the break above 12.76 get sucker punched.

First of all, even if the indexes keep going higher, they are likely in a trading range and that will also be the case with MRVL. MRVL is likely going to get into a trading range between $10 and $13 dollars, and therefore rallies up to 13.15 should be sold, in my opinion.

I am not trading MRVL so I do not have my own money involved either way, but I just wanted to let you know what I am looking at in the charts.