What does it mean when a stock is oversold?
hello, ususally term "oversold" used analyst / pudits feel stock buying price i.e rationale stock has been "sold" beyond reasonable price / level hence "oversold". typically analyst / pundits use various ways measure "fair value" stock (i.e looking @ charts, financial being of company, etc) , when investors start sell stock , stock goes down these analysts determine if stock unjustly sold or oversold based on research.
opposite can happen if stock rises , analyst feel stock "over bought" i.e it's @ unsustainable level , not warrant being high.
hope helps
does mean undervalued ?
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