Aug. 14 at 11:32 PM
$ORCL $PLTR Why does price action look so choppy on the way up——
Because markets rarely move in a straight line. As price rises, it constantly runs into profit-taking, trapped holders selling at breakeven, short-term algo sell orders, and call holders closing positions. That creates temporary pullbacks.
Once price dips, buyers step back in, shorts cover, and market makers adjust their options hedges—pushing it higher again. That’s what creates the familiar stair-step pattern: rally, pullback, absorption, then another rally.
The chop is basically the market digesting overhead supply and testing demand at each level. As long as buyers keep absorbing the selling and both highs and lows continue moving higher, the broader uptrend remains intact.
