Marvell Technology Group could start a technical downward trend after the rebound in recent sessions.
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
Marvell Technology Group Ltd specializes in designing and marketing integrated communications and storage circuits intended for manufacturers of high-speed network equipment, hard disks, and consumer electronics. Net sales break down by area of application as follows:
- data centers (40.7%): artificial intelligence systems, data storage systems, Ethernet switches, servers, interconnection systems, etc.;
- enterprise networks (23.1%): routers, Ethernet switches, wireless access points, network equipment, workstations, etc. for campuses, small and medium-sized enterprises;
- telecom network infrastructures (18.3%): access multiplexers, Ethernet switches, optical transport systems, routers, wireless radio network access systems, etc.;
- consumer electronics (11.9%): broadband gateways and routers, game console systems, home data storage systems, home wireless access points, personal computer systems, printers and receiver terminals;
- automotive and industrial (6%): advanced driver assistance systems, autonomous vehicle systems, embedded network systems, industrial Ethernet switches, video surveillance systems.
Net sales are distributed geographically as follows: the United States (11.7%), China (42%), Malaysia (6.6%), Thailand (6.6%), Singapore (5.6%), Taiwan (4.9%), Japan (4.4%), Finland (3.2%), Philippines (2.9%) and other (12.1%).
MARVELL TECHNOLOGY GROUP LTD 
