over·​bought | \ ˌō-vər-ˈbȯt How to pronounce overbought (audio) \

Definition of overbought

: not likely to show an immediate rise in price because of prior heavy buying and accompanying price rises an overbought market

Examples of overbought in a Sentence

Recent Examples on the Web Warning signs were already showing in the market last week, with the gauge trading in overbought territory, above its 200-day moving average and higher than the key 27,000 point level. BostonGlobe.com, "A Hong Kong police officer shot two protesters, as the financial hub reeled from citywide efforts to disrupt the morning commute amid worsening political unrest.," 5 Jan. 2019 These three sectors are starting to look overbought. Jon Sindreu, WSJ, "Investors Are Too Thirsty for Utility Stocks," 28 June 2019 When the Nasdaq 100 Index reached all-time highs in January, the gains were fairly broad-based, with roughly 40 percent of its constituents in overbought territory and at 52-week highs. Luke Kawa, Bloomberg.com, "This Latest Tech Stock Record Is All About the FANGs," 5 June 2018 As the tech-heavy gauge hit new records this month, the advance is concentrated in big names -- fewer than 20 percent of its members are overbought and at one-year highs. Luke Kawa, Bloomberg.com, "This Latest Tech Stock Record Is All About the FANGs," 5 June 2018 The Hong Kong shares have been either oversold or overbought -- and often both -- every year since its 2002 initial public offering in the city. Bloomberg.com, "Shares in a Buffett-Backed Chinese Car Company Are Getting Crushed," 2 May 2018 Recent corrections in Brent have shown prices hit a speed bump only when the reading on its Relative Strength Index climbs to 75, well past the usual overbought signal of 70. Serene Cheong, Houston Chronicle, "Bullish oil signs show Saudi Arabia's $80 goal within reach," 19 Apr. 2018 Three of the quartet ended Monday in overbought territory, as judged by the 14-day Relative Strength Index. Luke Kawa, Bloomberg.com, "This Latest Tech Stock Record Is All About the FANGs," 5 June 2018 The market is verging on such overbought levels that not even reliably bullish analysts can keep up with the new highs. Bloomberg.com, "Signs of Euphoria Are So High Investors Are ‘Having a Hard Time Imagining a Decline’," 9 Jan. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'overbought.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of overbought

1925, in the meaning defined above

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The first known use of overbought was in 1925

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Cite this Entry

“Overbought.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/overbought. Accessed 27 Nov. 2020.

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