Time to dust off the discussion about InterDigital, Inc. (IDCC) and its support at $31.40. We thought we had left the question behind late last week when IDCC pushed off that support level and was en route to breaking above the ceiling at $33.69. Funny thing though…. not only was the ceiling never broken, but the floor is being pressured again. InterDigital, Inc. closed at $31.47 yesterday. The selling volume is slightly on the rise too. Point being, IDCC is still on the verge of a minor breakdown.

And I want to stress ‘minor’. I still have a modest expectation that the 50 day moving average line at $28.55 will be a reversal point if the bears take enough hold now to actually crack support at $31.47. In fact, I think I’d be a buyer if the 50 day line is successfully retested.

Why so confident about this support line? Because that’s also where you’ll find not one but two key Fibonacci retracement lines. The more potential support levels there are at a certain spot, the more apt it is to hold up as support. (On the chart below, one set of Fib lines is red, and the other is green.)

I just wanted to let you know what to expect, primarily because I don’t want current IDCC owners to over-react (i.e. dump ‘em indiscriminately) just because the stock gives up a little ground.

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