Oversold

An objective term used by technical analysts and investors that refers to a security which has experienced a decline in price and is expected to bounce or level off.
Some investors use indicators that notify them when a stock is oversold. For example, when the RSI for a stock is below 30, it is considered to be oversold.

Oversold is a very objective and overused term. Many times when an investor believes a stock is oversold, it continues to fall due to momentum and other reasons. Investor caveat.

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