Stock Of The Day: Here's Why Weight-Loss Drug Maker Eli Lilly Has Reversed
Stock Of The Day: Here's Why Weight-Loss Drug Maker Eli Lilly Has Reversed
When a stock reaches resistance the situation changes. There are enough sell orders to fill all of the buy orders so it stops moving higher.When stocks rally, they tend to run into resistance if they reach a price level that had been resistance before. And sometimes, after hitting it they reverse and head lower.
当股票上涨时，如果它们达到一个之前曾经是阻力位的价格水平，它们往往会遇到阻力。有时，在达到阻力位后，它们会反转并下跌。
As you can see on the chart, this is what just happened with shares of Eli Lilly and Co (NYSE:LLY). This is why our team of trading experts have made it our Stock of the Day.
正如您在图表上所看到的，这正是Eli Lilly and Co股份（NYSE: LLY）刚刚发生的情况。这也是为什么我们的交易专家团队将其定为我们的每日股票。
When a stock is moving higher, it is out of equilibrium. There is more demand (buy orders) than there is supply (sell orders). As a result, if they want to acquire shares, the buyers are forced to pay successively higher prices. This makes the stock move higher.
当股票上涨时，它处于不平衡状态。需求（买入订单）大于供应（卖出订单）。因此，如果买方想要购买股票，他们被迫以越来越高的价格购买。这使得股票上涨。
When a stock reaches resistance the situation changes. There are enough sell orders to fill all of the buy orders so it stops moving higher.
当股票达到阻力位时，情况发生变化。有足够的卖出订单来填补所有买入订单，因此它停止上涨。
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In July, Eli Lilly hit resistance when it reached the $955 level. Then after a sell-off and reversal, it ran into resistance again at the same price in August.
7月，Eli Lilly股价达到955美元时遇到阻力位。然后，在经历了一次抛售和逆转之后，它在8月再次遇到同样价格的阻力位。
There is a reason why this happened.
这是有原因的。
Many of the people who bought Lilly when it was at resistance in July regretted their decision to do so when the price moved lower. A number of these disappointed buyers decided to sell their shares.
七月份在股票的支撑位买入礼来公司的许多人后悔了自己的决定，因为价格下跌。许多这些失望的买家决定卖出自己的股票。
But they didn't want to lose any money. So, when the stock returned to this level they sold their shares. This allowed them to exit the position at breakeven. This large concentration of sell orders formed resistance again at the $955 level.
但是他们不想亏钱。所以，当股票回到这个水平时，他们卖掉了自己的股票。这使他们能够以保本的价格离开这个位置。这个大量的卖单在955美元水平形成了支撑位。
Sometimes stocks reverse and head lower after they reach resistance. This is the case here.
有时候股票在达到支撑位后会出现反转走势。这种情况就是这里的情况。
Stocks sell off of resistance because some traders and investors who created the resistance with their sell orders start to undercut each other. They are afraid they'll miss out.
股票在达到支撑位后出售，因为一些交易员和投资者用自己的卖单创建了支撑位，他们开始互相压低价格。他们担心自己会错过机会。
They know that the buyers will go to whoever is willing to sell at the lowest price. So, they reduce the prices they are willing to sell. Others who wish to sell see this and do the same thing. It results in a snowball effect that pushes the price lower.
他们知道买家会去愿意以最低价格出售的卖家那里购买。所以，他们降低了自己愿意卖出的价格。其他希望卖出的人看到这一点也会做同样的事情。这导致了一个滚雪球效应，将价格推低。
Successful traders understand how important investor and trader psychology is. This allows them to identify important price levels and new trends that are forming. This leads to profits.
成功的交易员知道投资者和交易员心理有多么重要。这使他们能够确定重要的价格水平和正在形成的新趋势。从而获得利润。
Photo: rafapress on Shutterstock
照片：shutterstock上的rafapress
