Trading Strategies For Marvell Stock Post Q1 Print, A Top Holding In Spear Alpha ETF (SPRX)

Marvell Technology, Inc MRVL was moving slightly higher on Thursday ahead of its first-quarter earnings print set to take place after the market closes.

When Marvell printed its fourth-quarter earnings on March 7, the stock plunged over 11% the following day and entered into a steep downtrend, which brought the stock to a low of $63.46 on March 19.

For that quarter, Marvell reported earnings per share of 46 cents, in line with the consensus estimate. The stock printed revenues of $1.427 billion, which exceeded the consensus estimate of $1.42 billion.

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From a technical analysis perspective, Marvell's stock looks bullish heading into the event, printing a possible bull flag pattern on the daily chart.

It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.

Bullish On Marvell? Traders and Investors looking to play the possible upside in Marvell stock but with diversification may choose to take a position in the Spear Alpha ETF SPRX.

SPRX is an actively managed fund offering investors the opportunity to achieve more than passive tracking of the broader market. Some of the fund's top holdings include NVIDIA Corporation NVDA, weighted at 11.59%, Advanced Micro Devices AMD, weighted at 9.14% and Zscaler, Inc ZS, weighted at 8.53%. Marvell is weighted at 5.33% within the ETF.

SPRX invests in companies capitalizing on emerging trends in industrial technology, aiming to uncover undervalued opportunities within various value chains aligned with themes such as enterprise digitalization, automation, AI, environmental focus, photonics, additive manufacturing, and space exploration. The ETF, traded on the Nasdaq exchange, targets long-term capital growth and is up about 60% over the last twelve months.

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The Marvell Chart: Marvell has been trading in an uptrend since April 22, when the stock bounced up from the 200-day simple moving average. The most recent higher high was formed at the $78.44 mark on Tuesday and the most recent confirmed higher low was printed at the $66.97 mark on May 14.

• After forming the most recent higher low, Marvell surged about 17% to print the most recent higher high before retracing slightly on Wednesday and Thursday, which settled the stock into a bull flag pattern. If the pattern is recognized and Marvell reacts positively to its earnings print, the measured move suggests the stock could rally toward about the $88 mark.
• Bears want to see Marvell suffer a negative reaction to its earnings and fall lower on Friday. If that happens, Thursday’s high-of-day will serve as a lower high, which would negate the uptrend.

Marvell has resistance above at $80.09 and at $85.76 and support below at $75.53 and at $72.86.

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