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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 ?
She "unsold" unnecessary voluntary plans as appropriate, taking the ethical approach rather than taking advantage of the income she could have had from continuing the overselling process.
We can generate the highest revenue for all inventory and prevent overselling by providing the sales team with real-time access to inventory data.
DVD backers have been cautious to avoid overselling the format and have yet to persuade three major studios - Disney, Paramount and 20th Century Fox - to endorse the technology although rumors have emerged that Disney is planning a DVD release of ``Hercules'' later this year.
The overselling in our stock in the past few weeks does not seem to have had a negative impact on our share price.
One hopes he was either underselling the inauguration or overselling QVC when, standing on Pennsylvania Avenue in suit and tie, he invoked QVC's favorite adjective to declare: ``One of the more exciting aspects of this inauguration is the agreement that we have with QVC.
The complaint also accused Network Associates of "channel stuffing" -- overselling to its distributors to pad short-term results.
As a result, wireless companies are overselling their network capacity, experiencing serious network outages, and not reporting any of them.