Definitions

from The American Heritage® Dictionary of the English Language, 5th Edition.

  • adjective Characterized by excessively high prices owing to prior heavy buying and a concomitant rise in prices.

from Wiktionary, Creative Commons Attribution/Share-Alike License.

  • adjective finance 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.

Etymologies

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Examples

  • My inbox is filled with folks focusing on the short term overbought reading rather than the head and shoulders bottom or the Russell ...

    unknown title 2011

  • My inbox is filled with folks focusing on the short term overbought reading rather than the head and shoulders bottom or the Russell ...

    unknown title 2011

  • " We view the pullback as healthy because it relieved widespread short-term overbought conditions without a loss of positive intermediate-term momentum, " said Katie Stockton , chief market technician at MKM Partners.

    Dollar Strength Crimping Stock Gains Steven Russolillo 2010

  • " The recent pullback was constructive, in our view, because it relieved widespread short-term overbought conditions, " said Katie Stockton , chief market technician at MKM Partners.

    ' Steven Russolillo 2010

  • "We could see a pullback this week as the recent rally did bring short-term overbought conditions, but I don't think a pullback will retrace the entire rebound," Ms. Stockton said.

    Guaranty Financial Loses 11%; 2008

  • Wrapping it up, expect the market to move higher, but not without some struggle as short-term overbought conditions will likely add some drag to the day-to-day activity.

    Overbought Bull Could Slip From Highs Chris Johnson 2006

  • "This was a testament to the positive momentum behind the uptrend, which allowed long-term overbought conditions to be sustained for more than three years," Stockton said.

    BusinessWeek.com -- Top News 2011

  • Several of these miners, as well as the Market Vectors Gold Miners ETF GDX, which has the above-named companies in its top holdings, may be short-term overbought.

    unknown title 2011

  • Because of the steepness of the rally and the short-term overbought conditions, traders have to be aware of the possibility of a near-term correction especially since Friday's U.S. Non-Farm Payrolls report typically triggers a volatile two-sided reaction.

    CNN.com 2011

  • Against this backdrop, each benchmark is near-term overbought - the S&P has risen 4.7% across just three weeks - and a consolidation phase is overdue.

    MarketWatch.com - Software Industry News 2012

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