Marvell Broke Resistance

Published on Wednesday, 08 September 2010 07:40 Written by Christian Paolinetti

New York, September 8th (TradersHuddle.com) - Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) closed the trading session at $17.13 just above calculated resistance at $16.74 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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 was trading in a well defined range with support at $13.87 and resistance at $16.74, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Marvell's stock is still near the broken resistance level, traders will be focusing on $16.74 to see if the stock holds the breakout without rolling over.