Trading Idea: - Is Marvell close to Resistance?
Published on Wednesday, 06 February 2013 08:00 Written by TradersHuddle Wire
New York, February 6th (TradersHuddle.com) - Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) are trading very close to calculated resistance at $9.60. The stock ended the trading session at just $9.46, which is near levels that make it difficult to buy or start a position.
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 stock range is defined by its calculated support defined at $6.98 and by the resistance level at $9.60; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.
Traders don't have a clear entry point for Marvell. However, as the stock pulls back towards $6.98 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $9.60 then traders will get an opportunity to enter the stock as it moves to a higher range.