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Related to Over-Sold: Overbought Oversold Indicator


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 ?
In two weeks, the index shed more than 2,700 points, or over 17 percent, with various technical charts indicating stocks were in over-sold territory.
The euro is tricky as it's politically vulnerable, but very over-sold.
Nevertheless, the excess over-sold nature of the russian market together with slight upping of the american futures and the oil allowed the russian indices to get positive.
Consequently, the market reached a relative equilibrium and investors began to buy back some of the stocks that were thought to be over-sold throughout July.
The same attitude, applied by massively overpaid pension-fund operators, has now left millions of hardworking people high and dry with no prospect of receiving the bountiful private pension that was over-sold to them.
This has led to hundreds of young people trying to gain entry to the parties, which in some cases are being over-sold to generate more money for the organisers.
Is the stock now over-sold following the recent sell-off?
While the system will likely able to protect central Israel from the daily threat of Hamas' rocket capabilities, analysts say defense officials may have over-sold its capabilities to the public in a scenario where open conflict with Hizbullah - in possession of tens of thousands of rockets - erupt.
But the move is likely an adjustment to a recent over-sold condition and the markets were not yet out of the woods, some analysts say.
This obviously means that many C-level executives were over-sold or were simply never brought down to reality of the cloud's ability.
She worries that these might be being over-sold in the commercial excitement.
But does that mean that what was once over-sold is now over-bought?