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Related to Oversold: Overbought Oversold Indicators


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 ?
This is just a technical rebound as shares are already badly oversold,'' said a dealer at a Singapore brokerage.
One of the reason of oversold can be the Europe market being in a down-trend.
Bank stocks are rebounding from oversold levels, but it's too early to say that the fundamental outlook has changed.
amp;bull; Euro testing 20-Day SMA • Dollar/Yen upside seen • Cable looking oversold • Dollar/Swiss to 1.
The last two bottoms in the S&P were marked by oversold stochastic readings below 20.
Two fourth-quarter educational programs sponsored by Tax Executives Institute were oversold.
They look for undervalued stocks that were oversold for tax selling.
The cognitive position on reward is unfortunately oversold these days," contends Allen Neuringer of Reed College in Portland, Ore.
We saw some optimism last week and I said the following - "The stock is showing a short-term oversold condition but the former support near 18 now looms as overhead resistance.
The dollar-loonie has moved only 50% of its daily ATR, which could lead the pair to trend lower over the next few hours of trading as oil and global stock prices push higher however, as the RSI approaches oversold territory, we may see the pair hold a narrow range throughout the day following the sharp the decline from earlier this week.
lt;strong>Overbought or Oversold</strong><br> Wilder recommended using 70 and 30 and overbought and oversold levels respectively.
In Los Angeles we feel that the market is solid yet oversold.