Marvell Technology’s price levels are worth keeping an eye on as the stock moves higher following strong earnings

Marvell Technology (MRVL) jumped in premarket trading on Wednesday after the chipmaker reported strong quarterly results and offered a rosy outlook amid robust demand for its custom AI chips.

The company forecast fourth-quarter revenue of $1.80 billion, up or down 5%, comfortably beating the consensus forecast of $1.65 billion. Earlier this year, the chipmaker said it expected sales of AI networks and custom processor chips to reach $2.5 billion by fiscal 2026. CEO Matthew Murphy said on Tuesday’s earnings call that the company had overreached.

Marvell shares rose more than 13% to around $109 in recent premarket trading. As of Tuesday’s close, the stock had gained nearly 60% year-to-date, driven by insatiable demand for advanced chips that can handle the complex processing needs of generative AI.

Below we break down the Marvell chart technicals and point out key price levels worth paying attention to.

Breakout of the ascending triangle

Marvell shares broke out of an ascending triangle on above-average volume on Monday, a bullish chart pattern that indicates a continuation of the stock’s upward trend.

Let’s speculate on an overhead price target using technical analysis and also identify several key support levels that investors can monitor during retracements.

Bar pattern over head target to observe

Investors can predict an overhead target using a bar pattern. This is a technique that analyzes previous price bars on the chart to predict future movements.

To apply the tool to Marvell’s chart, we take the price bars from the stock’s trend movement between October and November and reposition them from the lower trend line of the ascending triangle. This forecasts an overhead target of around $120, about 25% above Tuesday’s closing price.

We selected this previous trend because it began at the lower trendline of a previous ascending triangle on the chart, similar to how the current upward move began.

Important support levels to monitor

The first lower level to monitor is around $95, an area on the chart that could provide support on a pullback to the upper trendline of the ascending triangle.

Selling below this level could see shares fall to $84. Investors may be looking for buying opportunities in this region near the uptrending 50-day moving average and a period of consolidation in late October.

Finally, a more bearish move opens the door for a retest of the lower support at $76. This area on the chart would likely attract buying interest around the upper trendline of the previous ascending triangle, which is also in close proximity to several prominent tops that have formed on the chart this year.

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At the time of writing, the author does not own any of the securities mentioned above.