overbought

American  

[oh-ver-bawt] / ˈoʊ vərˈbɔt /

adjective

1. marked by prices considered unjustifiably high because of extensive buying.

   The stock market is overbought now.

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verb

1. simple past tense and past participle of overbuy.

Etymology

Origin of overbought

First recorded in 1955–60; over- + bought

Compare meaning

How does overbought compare to similar and commonly confused words? Explore the most common comparisons:

• overbought vs. oversold

Example Sentences

The team at Longview Economics don’t think that by close of play on Friday the S&P 500 and Nasdaq were particularly overbought.

From MarketWatch

Campbell goes on to recognize that many commentators are highlighting the “overbought” trading profile of silver and also how the meteoric rise in the price of silver this year may well encourage its substitution with copper in industrial usage.

From MarketWatch

Overbought readings occur when rallies exceed historical norms.

From MarketWatch

Ari Wald, head of technical analysis at Oppenheimer, said high RSI readings, even when they are in overbought territory, indicate that price is accelerating, while bearish divergences indicate price is decelerating and at risk of reversing course.

From MarketWatch

And after RSI reached an overbought extreme of 84.89 on Nov. 23, 1998, RSI started trending lower while prices kept rising, and the 50-DMA rose well above the 200-DMA.

From MarketWatch