- oversold
- A technical description for a market in which prices have dropped faster than the underlying fundamental factors would suggest. The CENTER ONLINE Futures Glossary————Used in the context of general equities. Technically too low in price, and hence a technical correction is expected. Antithesis of overbought. Bloomberg Financial Dictionary————A technical opinion of a market which has fallen too low in relation to underlying fundamental factors. Chicago Mercantile Exchange Glossary
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an oversold financial market has prices that have fallen too far:• “The market is oversold,” he said. “It's time to buy low-priced blue chips.”
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When prices have dropped more than they should according to fundamental factors. This could mean the market is liable to an upward correction. In technical analysis, an instrument is oversold when it registers less than 25 percent on its RSI.* * *
oversold UK US /ˌəʊvəˈsəʊld/ adjective► FINANCE, STOCK MARKET used to describe financial markets, shares, etc. where prices have fallen too far in relation to their real value: »Stocks are in an oversold position right now.
»We have seen a dramatic recovery from the ridiculously oversold levels of last March.
Financial and business terms. 2012.