Marvell Technology Group Ltd : Bearish scenario preferred
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$15.09 | US$0 | US$16.05 | +100% |
The group's sales prospects have recently been revised downwards. This trend forecasts highlights pessimism from analysts regarding sales of the company.
Graphically, the stock went through a period of rebound in recent sessions towards the USD 15.23 medium-term resistance, which correspond to the long-term downward trendline. The share should consolidate near this area. It could act as a stopping point of the upward movement. This scenario suggests a return to the USD 13.7 support area which will be a bearish objective.
The upside seems limited as shown by fundamentals and technical configuration. In contact with the USD 15.2 resistance, a movement of consolidation could return the stock towards the USD 13.7 mid-term support. As a result, the most aggressive investors could take a short position near USD 15.2 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario