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Trading glossary

What is Oversold?

Technical AnalysisBeginner

A stock is considered oversold when its price has fallen too far too fast, suggesting it may be due for a bounce. RSI below 30 is a common oversold signal. Like overbought conditions, oversold stocks can stay oversold in strong downtrends.

Related terms: Overbought RSI (Relative Strength Index) Reversal

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