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.
由於Walgreens Boot Alliance. Inc.（納斯達克：WBA）發佈了可怕的業績，CVS Health Corp（紐交所：CVS）股價一落千丈。一些投資者擔心CVS可能會遇到類似的問題，這也是爲什麼CVS是我們挑選的今日股票的原因。
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美元的支撐位並不是巧合，這也並不令人驚訝。這體現了市場上重要的一種動態，聰明的交易員會利用它來獲利。這就是爲什麼它是我們選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.
最好的交易員不僅僅是猜測。他們會讓市場告訴他們該做什麼。市場通過到達重要的價格水平時的反應來表達“它自己的意思”。
Resistance Becomes Support
支撐位變壓力位
Price levels that had previously been resistance can convert into support levels.
先前作爲壓力位的價格水平可以變成支撐位。
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.
如圖所示，57.60美元的價格是5月份的頂部，當時很多人在那裏賣出，隨後價格下跌他們對所做出的出售決策感到高興。
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月初大幅上漲，許多交易員和投資者開始認爲他們賣出是個錯誤。他們決定回購股票，但只願意以相同的價格出售。
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，在這個價格水平，CVS找到支撐並不是巧合，許多這些後悔的賣家在57.60美元左右放置了買單。這些大量的訂單足以吸收所有的賣單並支撐股價。
Rebound Coming?
反彈來臨？
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.
當股票跌至支撐水平時，股票往往會反彈。這是因爲一些投資者和交易者通過他們的買單創建了支撐位而對此感到焦慮。
They sense other buyers are coming into the market. That's why the price has stopped moving lower.
他們感覺其他買家也在進入市場。這就是價格不再下降的原因。
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.
賣家會去找願意給出最高價格的人。因爲某些買家不想錯失交易，所以他們增加了願意支付的價格。
Others see this and do the same. And it could result in a bidding war to force the shares higher.
其他人看到了這一點，也這樣做。這可能導致一場拍賣，將股票推高。
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.
識別股票的重要價格水平對於成功交易至關重要。它有助於識別邏輯上的入場和離場位置。
Photo: Around the World Photos via Shutterstock
圖片：Via Shutterstock拍攝了全球各地的照片