Watch for a Breakout ! InterDigital, Inc.(NASDAQ:IDCC)

Discussion in 'Stock picks and trading strategies' started by antonioac, Sep 13, 2012.

  1. antonioac

    antonioac Member

    The stock has a clear key resistance line just above the 36 level, which it is approaching having gained 43 cents or more than 1.23% today, to 35.51. A move above 36.04 would confirm the breakout, with an initial target of 38.40 and secondary target of 40.68. Stop is at 33.65. The uptrend is definitely intact, awesome medium-term hold. The lows are rising and even the peaks are nudging up and up. Additionally, technical indicators are giving positive signals as the stock trades above the 200-SMA. The RSI is also rising after having found support near its previous lows. I believe the stock can continue its medium-term uptrend and test the $40 levels in the coming weeks. With over a short interest of 6.14 Million shares and average daily volume of only 770K, the short interest ratio is at 7.9, meaning it would take 8 days for all the shares short to be covered. Any type of good news related with a potential patent sale could launch a wicked short squeeze capable of adding a 20%-25% gain to the shares in a matter of minutes as we saw last month. Keep IDCC on the radar like a HAWK lol !!

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    Last edited by a moderator: Mar 22, 2014
  2. shulink

    shulink Member

    Added it to my watchlist, waiting for it to break resistance.
     
  3. antonioac

    antonioac Member

  4. antonioac

    antonioac Member

    This stock could see a short squeeze. InterDigital, Inc.(NASDAQ:IDCC) has been consolidating sideways the last few weeks and it broke the trendline resistance of 35 on Friday which leaves the door open for 38 area. A breakout could spark some short covering. Timing is everything and I truly believe IDCC is poised for strong upward momentum and another possible breakout coming soon. Additionally, technical indicators are turning up from oversold levels indicating more upside for IDCC. A lot of eyes are on this stock right now so make sure this is on your radar screens. Patience is a virtue !!

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    Last edited by a moderator: Mar 22, 2014
  5. antonioac

    antonioac Member

    I had InterDigital, Inc. (NASDAQ:IDCC) on my watchlist a few times this month and today it broke out in impressive fashion on volume expansion. I believe we'll see some nice follow through tomorrow. This was a stock that ran from these current prices to over $70 a share not long ago. From a technical standpoint the stock looks very strong with both 20-day and 50-day moving average going up while MACD is crossing up its signal and %K line is on top of %D line. I suspect the stock may continue to appreciate over the coming days.

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    Last edited by a moderator: Mar 22, 2014

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