Warp:
My buddy DB might be tied up doing something else. Your question on MRVL intrigued me so I hauled up a chart, and hope you don't mind if I think out loud here:
stockcharts.com[h,a]dhclyyay[pb10!b50!b200!f][vc60][iut!Lk14!Lb14!Ld20!Lc3!Lf!Lh14,3!La12,26,9]&pref=G
Your question was, is it a short candidate? Short answer, yes. I dunno what this company does, but the market environment isn't veddy good and the stock shows all sorts of signs of weakening. First there was the crash through the 10 day, then today it pierced the 50 day. If you can see it (if you're a subscriber) then you can see that the next level of DMA support is the 200 day. Look back a little while and see what pattern the stock made until it bounced twice off pretty good support at about 31. I haven't done a Fibon calc but I would guess if you just look at a 68% retrace of this last move you're at about 34. If you look at a larger move (which I haven't done, using just this standard chart) you'll find different levels of support.
The other indicators (assuming you can pull them up off the site) show a pretty negative environment and nothing to indicate oversold or reversal yet. That little hammer we had yesterday, bullish though it was, also pierced the 50 day, so call that one a draw, imho.
Bottom line, it's certainly not technically a long play here, so it's either a stay clear or a short.
Now, let's get DB's opinion and see where I might have erred.
Kb |
