BZ Chart Of The Day: Is Apple Forming A Trading Range?

There’s a good chance shares of Apple Inc. (NASDAQ:AAPL) are forming a trading range. And when this happens, traders can profit.

At a top of a trading range, there is resistance. This is a large group of sellers offering their shares at the same price.

At the bottom of a trading range, there is support. This is a large group of buyers who are all looking to pay the same price for new shares.

When stocks rally to resistance they tend to sell-off. When they fall to support, they tend to rally. Traders make money by selling or shorting at the top of a range, and buying at the bottom of the range.

See Also: Apple 'Unleashed' Event Confirmed For Oct. 18: What You Need to Know

The range Apple's stock appears to be forming is between $139 and $144. Unless important news comes out, there’s a good chance the shares will stay within it. And traders will continue to make money.

To learn more about charts, check out the new Benzinga Trading School.