Marvell near Resistance

Published on Tuesday, 07 February 2012 08:20 Written by TradersHuddle Wire

New York, February 7th (TradersHuddle.com) - Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) are trading very close to calculated resistance at $16.86 with the current price action closing at just $16.34 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $15.23 and by the resistance level at $16.86, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Marvell, as the stock is well above support, however, as the stock pulls back towards $15.23 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $16.86 then traders will get an opportunity to enter Marvell stock by establishing a position as the stock moves to a higher range.