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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 ?
Airlines oversell flights based on their own analysis of how many passengers will cancel, he said, and it's not in airlines' interest to overbook flights to excess, because then they have to deal with angry passengers.
This is not the first time BAR has taken action against a major repair chain for oversell practices.
You don't want to oversell ``Shanghai Noon'' - it is, fundamentally, just the old ``Kung Fu'' TV series with laughs and better stunts.
A lot of ISPs oversell their bandwidth more times than they have capacity to, and the network slows down and degrades the voice quality.
Wireless companies continue to oversell their capacity for service - the result of mounting public demand which has outpaced the wireless infrastructure - and unsuspecting customers are paying the price.
Reduce oversells and undersells by incorporating manufacturing constraints into pricing decisions