A few days ago, after seeing InterDigital’s (IDCC) higher highs and higher lows transition into lower highs and lower lows, I was prepping for a pullback. No big deal - we were already up about 6.2% on the January 21st trade, and had a profit cushion to work with. The last two days, however, have me thinking the chart’s going to find support a lot higher than I was expecting… at the 20 day moving average line.

The 20 day average was tested as support yesterday, and again today. Both tests were passed; on both days we pushed off that line and made closes that were higher than the opens. It’s not earth shattering, but any ground we don’t have to give up now is ground we don’t have to regain later.

I’d still like to see $33.70 met and exceeded before we get too excited, but as long as the 20 day line holds up, the trade will be in very good shape. On the other hand, even a tumble under the 20 day average wouldn’t be a deal breaker. The only deal breaker would be a move under the 50 day line, currently at $28.07.

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