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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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.
Out of all those that responded, 86% felt that wireless would overtake and oversell landline services within the decade.
One need not oversell the glories of the high-minded gentlemen of yester-year--arguably no one shares more responsibility for the horrors of the Vietnam War than Rockefeller Foundation President and former Secretary of State Dean Rusk--to be struck by the important contributions that these foundations made to public interest, consumer, and environmentalist law in the Sixties and Seventies.
When they are bombarded by spin and oversell, their defense is "yeah, right." When they can't discern an easy yes or no or sort things from among confusing shades of gray, it is comforting to feel that everything is sort of "like" something - not definitive, just sort of out there.
His book reads unavoidably as oversell in certain places, but his wealth of detail regarding the dramatic joining of cultures allows us cautiously to share his optimism for Chinas artistic and humanistic future.