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 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.
當股票上漲時，如果它們達到一個之前曾經是阻力位的價格水平，它們往往會遇到阻力。有時，在達到阻力位後，它們會反轉並下跌。
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.
正如您在圖表上所看到的，這正是Eli Lilly and Co股份（NYSE: LLY）剛剛發生的情況。這也是爲什麼我們的交易專家團隊將其定爲我們的每日股票。
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.
當股票上漲時，它處於不平衡狀態。需求（買入訂單）大於供應（賣出訂單）。因此，如果買方想要購買股票，他們被迫以越來越高的價格購買。這使得股票上漲。
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.
當股票達到阻力位時，情況發生變化。有足夠的賣出訂單來填補所有買入訂單，因此它停止上漲。
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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股價達到955美元時遇到阻力位。然後，在經歷了一次拋售和逆轉之後，它在8月再次遇到同樣價格的阻力位。
There is a reason why this happened.
這是有原因的。
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.
七月份在股票的支撐位買入禮來公司的許多人後悔了自己的決定，因爲價格下跌。許多這些失望的買家決定賣出自己的股票。
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.
但是他們不想虧錢。所以，當股票回到這個水平時，他們賣掉了自己的股票。這使他們能夠以保本的價格離開這個位置。這個大量的賣單在955美元水平形成了支撐位。
Sometimes stocks reverse and head lower after they reach resistance. This is the case here.
有時候股票在達到支撐位後會出現反轉走勢。這種情況就是這裏的情況。
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.
股票在達到支撐位後出售，因爲一些交易員和投資者用自己的賣單創建了支撐位，他們開始互相壓低價格。他們擔心自己會錯過機會。
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.
他們知道買家會去願意以最低價格出售的賣家那裏購買。所以，他們降低了自己願意賣出的價格。其他希望賣出的人看到這一點也會做同樣的事情。這導致了一個滾雪球效應，將價格推低。
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.
成功的交易員知道投資者和交易員心理有多麼重要。這使他們能夠確定重要的價格水平和正在形成的新趨勢。從而獲得利潤。
Photo: rafapress on Shutterstock
照片：shutterstock上的rafapress
譯文內容由第三人軟體翻譯。