Glossary Term

Oversold

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Oversold s a trading terminology that refers to a scenario where a security is priced much lower than its intrinsic value. Analysts determine the oversold state of a stock by comparing the price it’s currently trading at vs prices in the past. Oversold conditions can last for a long time and they are subjective as analysts use different tools to reach their conclusions. Oversold conditions can occur when there is a great deal of bad news and pessimism concerning a specific asset or market in general.

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