overbought

A technician's term to describe a market in which the price has risen relatively quickly-too quickly to be justified by the underlying fundamental factors. The CENTER ONLINE Futures Glossary
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Used in the context of general equities. Technically too high in price, and hence a technical correction is expected. Bloomberg Financial Dictionary
See: heavy. Antithesis of oversold. Bloomberg Financial Dictionary
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A technical opinion of a market which has risen too high in relation to underlying fundamental factors. Chicago Mercantile Exchange Glossary
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A term describing a market (or a particular security), which is at an artificially high price level due to excessive buying. When a market (or security) is believed to be overbought, it is also believed to be due for a downward correction. On the other hand, when a market (or security) is believed to be oversold, it is believed that there has been excessive selling and the price is due for an upward correction. London Stock Exchange Glossary

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overbought o‧ver‧bought [ˌəʊvəˈbɔːt ǁ ˌoʊvərˈbɒːt] adjective
FINANCE if a financial market is overbought, prices are higher than many people think they should be, and will probably come down:

• He thinks the gold market is overbought and there will be a correction in two to three months.

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   When prices have risen more than they should according to fundamental factors. This could mean the market is liable to a downward correction. In technical analysis, an instrument is overbought when it registers more than 75 percent on its RSI. The opposite of oversold.
   ► See also Oversold, RSI, Technical Analysis.

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overbought UK US /ˌəʊvəˈbɔːt/ adjective
FINANCE used to describe financial markets, shares, etc. where prices have risen too far in relation to their real value: »

Investors remain worried about valuations and claims that the market is overbought.

Compare OVERSOLD(Cf. ↑oversold)

Financial and business terms. 2012.

Look at other dictionaries:

  • Overbought — 1. A situation in which the demand for a certain asset unjustifiably pushes the price of an underlying asset to levels that do not support the fundamentals. 2. In technical analysis, this term describes a situation in which the price of a… …   Investment dictionary

  • overbought — 1) Having purchased more of a good than one needs or has orders for. 2) Having purchased more securities or commodities than are covered by margins deposited with a broker or dealer. In a falling market, for example, a bull speculator can become… …   Big dictionary of business and management

  • overbought — /ˌəυvə bɔ:t/ adjective having bought too much ♦ the market is overbought prices on the stock market are too high, because there have been too many people wanting to buy ▪▪▪ ‘…they said the market was overbought when the index was between 860 and… …   Dictionary of banking and finance

  • overbought — adjective Date: 1929 not likely to show an immediate rise in price because of prior heavy buying and accompanying price rises < an overbought market > …   New Collegiate Dictionary

  • overbought — /oh veuhr bawt /, adj. 1. marked by prices considered unjustifiably high because of extensive buying: The stock market is overbought now. Cf. oversold. v. 2. pt. and pp. of overbuy. [1955 60; OVER + BOUGHT] * * * …   Universalium

  • overbought — adjective A stock or commodity market condition where there has been significant trading bidding up prices to higher levels, levels which seem overextended or excessive on a short term basis. Ant: oversold …   Wiktionary

  • OVERBOUGHT — Период, используемый для выражения мнения, что цены повысились слишком высоко и слишком быстро, следовательно будет понижение цен. Дословно рынок перекуплен …   Малая энциклопедия трейдера: глоссарий к книге

  • overbought — o·ver buy || ‚əʊvÉ™(r)baɪ v. buy in excessive quantity; buy more than one can afford to pay for …   English contemporary dictionary

  • Overbought —   A positive open currency position …   International financial encyclopaedia

  • overbought — past and past participle of overbuy …   English new terms dictionary

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