Definition of «oversold»

The term "oversold" is commonly used in financial markets to describe a situation where there has been an excessive decline in the price of an asset or security. This can occur when investors become overly pessimistic about the future prospects of a company, causing its stock price to drop significantly.

In technical analysis, oversold is used to refer to a condition where the relative strength index (RSI) falls below 30, indicating that the security has fallen too far in relation to recent trading activity and may be due for a bounce back up. This can provide a signal to investors or traders to consider buying the asset as it appears to be undervalued.

Overall, oversold is used to describe a situation where an asset or security has fallen too far in value relative to its fundamentals and may present a buying opportunity for those who believe that the market has overreacted.

Phrases with «oversold»

Sentences with «oversold»

In recent weeks, we've certainly seen an improvement in many of these measures from their lows in January and February, but to - date, the extent of that improvement is of the character we typically observe during bear market rallies and short - squeezes - essentially a «fast, furious, prone - to - failure» clearing of oversold conditions on progressively dull trading volume. (hussmanfunds.com)
As I've noted before, this is actually bearish action, because it prevents the kind of oversold condition that can give rise to a «breadth thrust.» (hussmanfunds.com)
You wouldn't merely say that «Accounting» was your title, though I've seen many resumes with one word descriptors when two or three could generate a bit more interest as long as they don't oversell what you actually are charged with doing. (feedspot.com)
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Definition of «oversold»

Phrases with «oversold»

Sentences with «oversold»

See also