Stock Of The Day: It's No Coincidence CVS Health Stock Found Support Where It Did
Stock Of The Day: It's No Coincidence CVS Health Stock Found Support Where It Did
CVS Health Corp (NYSE:CVS) shares are getting crushed because of the terrible earnings report from Walgreens Boot Alliance. Inc. (NASDAQ:WBA). Some investors fear CVS may experience some of the same issues that drove Walgreens lower.
由于Walgreens Boot Alliance. Inc.（纳斯达克：WBA）发布了可怕的财报，CVS Health Corp（纽交所：CVS）股价一落千丈。一些投资者担心CVS可能会遇到类似的问题，这也是为什么CVS是我们挑选的今日股票的原因。
It isn't a coincidence CVS found support right around the important $57.60 level. And it's not surprising either. It's an illustration of an important market dynamic that savvy traders use to profit. This is why it's our Stock of the Day.
CVS找到重要的57.60美元的支撑位并不是巧合，这也并不令人惊讶。这体现了市场上重要的一种动态，聪明的交易员会利用它来获利。这就是为什么它是我们选出的今日股票的原因。
The best traders don't guess. They let the market tell them what to do. And the market "speaks" by how it reacts when an important price level has been reached.
最好的交易员不仅仅是猜测。他们会让市场告诉他们该做什么。市场通过到达重要的价格水平时的反应来表达“它自己的意思”。
Resistance Becomes Support
支撑位变压力位
Price levels that had previously been resistance can convert into support levels.
先前作为压力位的价格水平可以变成支撑位。
As seen on the chart, the $57.60 level was the top in May. And many people who sold there were happy they did so after the price fell lower.
如图所示，57.60美元的价格是5月份的顶部，当时很多人在那里卖出，随后价格下跌他们对所做出的出售决策感到高兴。
But then the stock ripped higher in early June and a number of these traders and investors started to think they made a mistake by selling. They decided to buy their shares back — but only at the same price they were sold.
但是，股票在6月初大幅上涨，许多交易员和投资者开始认为他们卖出是个错误。他们决定回购股票，但只愿意以相同的价格出售。
So, it isn't a coincidence that CVS found support at this level. A large number of these remorseful sellers placed buy orders right around $57.60. This large concentration of orders was enough to absorb all the selling and put a floor under the shares.
因此，在这个价格水平，CVS找到支撑并不是巧合，许多这些后悔的卖家在57.60美元左右放置了买单。这些大量的订单足以吸收所有的卖单并支撑股价。
Rebound Coming?
反弹来临？
Stocks tend to rally after they drop to support levels. This happens when some investors and traders who created the support with their buy orders become anxious.
当股票跌至支撑水平时，股票往往会反弹。这是因为一些投资者和交易者通过他们的买单创建了支撑位而对此感到焦虑。
They sense other buyers are coming into the market. That's why the price has stopped moving lower.
他们感觉其他买家也在进入市场。这就是价格不再下降的原因。
The sellers will go to whoever is willing to pay the highest price. Because some of these buyers don't want to miss the trade, they increase the prices they are willing to pay.
卖家会去找愿意给出最高价格的人。因为某些买家不想错失交易，所以他们增加了愿意支付的价格。
Others see this and do the same. And it could result in a bidding war to force the shares higher.
其他人看到了这一点，也这样做。这可能导致一场拍卖，将股票推高。
The ability to identify important prices levels for a stock is essential for successful trading. It helps to identify logical places to enter and exit positions.
识别股票的重要价格水平对于成功交易至关重要。它有助于识别逻辑上的入场和离场位置。
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