Well before the Artificial Intelligence (AI) hysteria was unleashed this past Thursday by the shockingly powerful earnings report from Nvidia (NVDA) that reset expectations for the growth and revenue potential of AI, our technical pattern analysis of MRVL provided an early heads-up for MPTrader members.
On the afternoon of May 15th, a full 10 days prior to NVDA earnings, Mike posted the following observation to our Coverage List:
MRVL is making noise today as the stock climbs above an important Feb-May resistance line in the vicinity of 40.70 and also thrust to the upside from a cluster of MA's beneath the price structure from 39.60 to 40.20 (see my attached Daily Chart) positioning the price structure for a challenge of consequential resistance in the 43.20 to 44.00 area that includes the moderately down-sloping 200 DMA, now at 43.13. A close above the 200 DMA (43.13) in the upcoming days will be a technically constructive development for MRVL as it attempts to merge from a base-accumulation period and pattern (Oct.2023 to present) in the aftermath of a DEEP CORRECTION (-64%) of MRVL's post-Pandemic bull run from 16.45 to 93.85. Earnings are due out on May 25th after the close. If MRVL can climb and sustain above its 200 DMA, then heading into earnings, the stock could be pushing 50 and in a very powerful technical position at the time of the next significant directional catalyst... Last is 41.69.
Fast-forward across 9 subsequent updates to our members that closely monitored the price and chart development of MRVL, the morning of MRVL's earnings report after the close, Mike wrote the following to our members:
MRVL reports earnings after today's close and has hit a high of 49.48 this AM, a full 34% above its April 25 pivot low of 36.90. While I would not dissuade anyone participating in this upmove to ring the cash register on some or all of the position ahead of the uncertainty of earnings, my pattern work argues for additional near-term upside into the 52-53 target zone. As long as any MRVL weakness is contained above 45.00, the near term bullish setup remains intact... Last is 47.30.
The rest is history as they say. MRVL had the benefit of the acutely bullish reaction to NVDA earnings from the day before as well as from its own powerful earnings report. The stock ripped to the upside in reaction to the news, surging 36% from Thursday's 4 PM Close to a multi-month high at 67.40, a full 61.7% above Mike's initial "heads-up" on May 15th!
This was a case of Mike's recognition of a 7-month base-accumulation pattern "whispering" to him about a potentially powerful upmove -- that indeed, turned out to be investible, and then communicating the ongoing pattern development to our members.
What's next for the companies directly involved in and tangential to AI? How is Salesforce (CRM) set up to react to its forthcoming earnings report later this week? Login this week to join Mike and our members for their intraday technical and fundamental discussions about opportunistic setups in many individual stocks, sectors ETFs, macro indices, commodities, precious metals, and Bitcoin.