Marvell Bullish Engulfing Formed
Published on Friday, 01 February 2013 21:12 Written by TradersHuddle Wire
New York, February 1st (TradersHuddle.com) - Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) ended the trading session higher by $0.28 or 3.03% from its previous close. Marvell's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.
Marvell Technology Group Ltd. (NASDAQ:MRVL) designs, develops, and markets integrated circuits for communications-related markets. The Company offers products that provide the interface between analog signals and the digital information used in computing and communications systems.
Marvell's recent stock range was formed by a trough where calculated support was defined at $6.98 and by a peak that established the resistance level at $9.38. This range could be used by traders managing their positions.
Traders wanting to establish a position in Marvell or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:
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