Overbought


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Related to Overbought: Overbought Oversold Indicator

Overbought

Used in the context of general equities. Technically too high in price, and hence a technical correction is expected. See: Heavy. Antithesis of oversold.

Overbought

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

overbought

Of, relating to, or being a stock market that has risen very rapidly in the recent past and is likely to suffer short-term price declines in the near future. Determining whether a market is overbought is difficult and is subject to individual interpretation.

Overbought.

When a stock or entire securities market rises so steeply in price that technical analysts think that buyers are unlikely to push the price up further, analysts consider it overbought. For these analysts, an overbought market is a warning sign that a correction -- or rapid price drop -- is likely to occur.

References in periodicals archive ?
Any adjustments in the oversold or overbought limit are prudential measures of the BSP to avoid "excessive exposure of banks" to FX-related risks particularly if this will hit its capital health.
On the MICEX market has to pass the level in 1415 points, but overcome its local rolling back down will be difficult, especially in view of the available overbought, so the show recoilless growth with the same rate will not be easy.
Some traders added that European equity indexes were looking "overbought" on a technical chart basis, giving them further reason to sell shares.
Foreign investors have overbought 308,000 Jih Sun shares so far in October, boosting the ratio held by foreigners to a lion's share of 70.53%.
There is more than enough here, even without bringing in China, to get a reaction out of technically overbought markets but there has been little response thus far.
According to Timothy Murphy of Trade Monitor Idea, a platform which connects brokers' trading recommendations with funds and asset managers, brokers believed LinkedIn was overbought and in the near term there would be a fall in its price.
That has also driven technical indicators into overbought territory with the relative strength indicator at 75 for Brent and 74 for WTI.
This is a technical momentum indicator that compares the size of recent gains to recent losses in an attempt to determine the overbought and oversold conditions of an asset (or contestant for sports traders).
Still, some analysts worry that the market is overbought and could be headed for a pause.
In 1999 and 2000, the corporate side overbought space, particularly in New York, because of centralization.
Prices of 10-year Japanese government bond futures moved lower Friday morning as dealers reduced their overbought positions ahead of the weekend.
Prices of 10-year Japanese government bond futures turned downward Wednesday for the first time in six trading days, with investors adjusting their long, or overbought, positions.