What is Overbought?
Technical AnalysisBeginner
A stock is considered overbought when its price has risen too far too fast, suggesting it may be due for a pullback. Technical indicators like RSI above 70 are commonly used to identify overbought conditions. Overbought doesn't mean the price will fall immediately — strong trends can stay overbought for extended periods.
Related terms: Oversold RSI (Relative Strength Index) Pullback