Okay, okay, okay Mr. Stock Market, I'll take the money on this trade.
Check out the chart on MRVL:
As you can see, this stock was in a consolidation (or symmetrical) triangle. It broke out of the triangle yesterday on rising volume. The volume increased today with higher prices. Also, it broke a prior level of resistance for 2 consecutive days.
In addition to all that sweetness, the stochs are going higher, the MACD histogram is getting more bullish, and the MACD lines look like they're ready for a cross up.
MRVL is in the technology sector, which is currently stronger than the SPX.
So, what I'm trying to say is that this looks like a good solid trade with a nice edge.
I bought a February 19 Call Option for $2.24. My target is approx $21.70, which lines up nicely on 2 different fronts (see the chart below):
1. It's the next level of resistance above, and
2. The measurement of the triangle pattern predicts this movement to get to this level.
So, there you have it, time to take the nice gift of money from Mr. Market - maybe he'll get it to us in time for Christmas. He better not be a Scrooge!
Glory to God!!!
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