Semiconductor Stock Due for a Short-Term Bounce

• StockStory Top Pick NVDA -0.97%
• MRVL +1.00%

Semiconductor stock Marvell Technology Inc (NASDAQ:MRVL) was last seen down 5% at $77.24, succumbing to broader-market headwinds alongside its sector peers as Nvidia's (NVDA) post-earnings rally fizzles. Though far removed from April lows, MRVL is still down 29.7% year to date. However, this latest pullback has support at the $80 level, as well a historically bullish trendline.

Per Schaeffer's Senior Quantitative Analyst Rocky White, MRVL is within 0.75 of the 320-day moving average's 20-day average true range (ATR) after remaining above it 80% of the time during the past two weeks and 80% of the last 42 trading sessions. This signal has occurred nine other times over the past 10 years, after which the stock was higher one month later 78% of the time with an average 7.7% gain.

An unwinding of pessimism amongst options traders could give the shares a lift as well. The equity's 10-day put/call volume ratio of 1.08 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 99% of readings from the past year.