Marvell Close to Support?

Published on Wednesday, 01 February 2012 07:24 Written by Christian Paolinetti

New York, February 1st (TradersHuddle.com) - Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) finished near calculated support at $15.23.

Current price action with, the maker of integrated circuits for communications-related markets closed at $15.54 has left shares at a level that needs to be monitored closely by traders wanting to start or add into a position in the stock.

Marvell's current stock range is defined by current calculated support defined at $15.23 and by the resistance level at $16.29.

The area defined as calculated support, is where we expect for buyers to likely materialize, which could provide a lift to the shares. However, this area if breached will signal participants that the stock failed to entice buyers to step in an support the stock.

Traders wanting to establish a position should pay close attention to Marvell's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $16.29 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.