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

The company guided fourth-quarter revenue of $1.80 billion, plus or minus 5%, handily surpassing the consensus forecast of $1.65 billion. Earlier this year, the chipmaker said it expects AI network and custom processor chip sales to reach $2.5 billion by fiscal 2026, a forecast CEO Matthew Murphy said on Tuesday’s 澳洲幸运5官方开奖结果体彩网:earnings call that the company was overshooting.

Marvell shares were up more than 13% at around $109 in recent premarket trading. Through Tuesday's close the stock had gained nearly 60% since the start of the year, boosted for insatiable demand for advanced chips that can power the complex processing requirements of generative AI.

Below, we break down the 澳洲幸运5官方开奖结果体彩网:technicals on Marvell’s chart and point out important price levels worth watching out fඣor.

Ascending Triangle Breakout

Marvell shares broke out from an 澳洲幸运5官方开奖结果体彩网:ascending triangle on above-average volume Monday, a bullish chart pattern that indicates a 澳洲幸运5官方开奖结果体彩网:continuation of the stock’s uptrend.

Let’s use 澳洲幸运5官方开奖结果体彩网:technical analysis to speculate an overhead 澳洲幸运5官方开奖结果体彩网:price target and also identify several important 澳洲幸运5官方开奖结果体彩网:support levels that investors may monitor during retracements.

Bars Pattern Overhead Target to Watch

Investors can forecast an overhead target using a bars pattern, a technique that analyzes prior price bars on the chart to pred𝔍ict future moves.

To apply the tool to Marvell’s chart, we take the price bars from the stock’s trending move between October and November and reposition them from the ascending triangle’s lower 澳洲幸运5官方开奖结果体彩网:trendline. This predicts an overhead target of around $120, about 25%♏ above Tuesday’s closing price.

We selected this prior trend as it began from the lowe💯r trendline of an earlier ascending triangle on the chart, similar to how the current move h♓igher has started.

Important Support Levels to Monitor

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

Selling below this level could see the shares fall to the $84 level. Investors may seek buying opportunities in this region near the upward sloping 澳洲幸运5官方开奖结果体彩网:50-day moving average and a period of 澳洲幸运5官方开奖结果体彩网:consolidation in late October.

Finally, a more bearish move opens the door for a retest of lower support near $76. This area on the chart would likely attract buying interest around the earlier ascending triangle’s top trendline, which also sits in close proximity to several prominent peaks that have formed on the chart this year.

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As of the date this article was written, the author does not own any of the above securities.