Oversold - Oversold Stock

Oversold is the condition in which a stock is extended to the downside following a downtrend, and is due for some consolidation or retracement.  Oversold readings may be found by using oscillators, or simply by seeing that a stock has fallen too far in too short of time.  Oversold stocks are due for a bounce due to the climax of selling in an event such as capitulation.  An oversold stock is falling in price at an unsustainable rate.

Oversold is the opposite of overbought.

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