In the world of finance, we often hear about a phenomenon known as "absorption of supply." This refers to the process by which a significant amount of stock or futures contracts, which were previously in excess, are gradually bought up by an increasing number of buyers over a period of time. This leads to a situation where the sellers are eventually depleted, giving way to a dominance of buyers which results in a rise in price. This is a crucial concept to understand for anyone looking to delve into the intricacies of the market.
