oversold
o·ver·soldverb
Past tense and past participle of oversell
adjective
Characterized by prices regarded as excessively low because of prior heavy selling and a concomitant decline in prices: an oversold stock market.
oversold
Adjective
(not comparable)
- (finance) A stock or commodity market condition where there has been significant trading driving prices down to lower levels, levels which seem overextended or excessive on a short-term basis.
Usage notes
The term can be applied subjectively, or in technical analysis there are various different indicators which technical analysts may use for (more or less) objective identification of oversold conditions.
Origin
over- +"Ž sold
oversold - Investment & Finance Definition
A market state that is determined by using technical analysis; an oversold condition exists when prices have declined too steeply and quickly compared to fundamental conditions. The next direction will be upward because everyone who wanted to sell already has done so.
