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Used in the context of general equities. Technically too low in price, and hence a technical correction is expected. Antithesis of overbought.


In technical analysis, describing a security with too low a price. This means that the technical indicators on the security do not justify its current price. Technical analysts may recommend buying oversold securities, as they are due for a price correction. See also: Overbought.


Of, relating to, or being a stock market that has declined rapidly and steeply in the recent past and is likely to exhibit short-term price increases in the near future. Determining whether a market is oversold is difficult and is subject to individual interpretation.


A stock, a market sector, or an entire market may be described as oversold if it suddenly drops sharply in price, despite the fact that the country's economic outlook remains positive.

For technical analysts, an oversold market is poised for a price rise, since there would be few sellers left to push the price down further.

References in periodicals archive ?
Last week the Sunday Mirror exposed one company for over-selling solar heating panels.
due partly to the burst of the internet "bubble," as a result of the over-selling of the web.
suggested that the council look at the issue of over-selling medicine in American culture.
It has become the focus of harsh criticism from analysts, who point to an 'unfocused' marketing strategy and the over-selling of the capabilities of its end-to-end systems management portfolio, and from customers, dissatisfied with its support capabilities.
Turn deals on and off at a moments notice to avoid over-selling
Scudamore is a brilliant negotiator who has excelled at over-selling a competition which could not provide a single Champions League or Europa League quarter-finalist last term.
Maybe that was over-selling it but it was a step in the right direction for Hodgson's England.
The slowdown in growth of IVAs is seen largely as a result of tougher demands from banks and pressure on debt management firms to "clean up their act" amid allegations of over-selling.
Be suspicious only of the sommelier who is over-selling a certain wine - they may be trying to get rid of a particular wine the restaurant no longer wants.
You are always wary of over-selling a record, but we expect it to do that and maybe up to a million.
What is not a technicality is the over-selling that took place: African Land owned 3,000 acres, but investors were sold 5,365 acres.