Dictionary of Business Terms: overbought
overbought
description of a security or a market that has recently experienced an unexpectedly sharp price rise and is therefore vulnerable to a price drop, called a correction by technical analysts, because there are few buyers left to drive up the price further. The opposite condition is oversold- when there are few sellers left and the price would be expected to rise.
Dictionary of Finance and Investment Terms: overbought
overbought
description of a security or a market that has recently experienced an unexpectedly sharp price rise and is therefore vulnerable to a price drop (called a correction by technical analysts). When a stock has been overbought, there are fewer buyers left to drive the price up further.
