Apple Caught In A Tight Range. Breakout Or Breakdown?

Apple Inc. AAPL in the key range it created after reporting stellar earnings on July 20th, 2010. The trading day following those earnings saw Apple gap higher to the $265.00 range, only to sell off to $254.00 level into the close. That range has created what I call a box trading range. Since then, the stock has not traded outside of that range once. Instead it has bounced up to the $265.00 level, then back down to the $254 level. It continues to jump back and forth. The key will be when it breaks the range one way or the other. Should it break the $265.00 level, the stock should trade back to the 52 week highs at $279.01. If it breaks the lower box level at $254.00, expect the stock to fall to the 200 moving average, currently at $228.00. To get more information, swing trades, guidance and education, join the Research Center. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com