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.
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.
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