Overbought

Overbought refers to a security that analysts or traders believe is trading above its intrinsic value. Overbought generally describes recent or short-term movement in the price of the security, and reflects an expectation that the market will correct the price in the near future. This belief is often the result of technical analysis of the security’s price history.

The opposite of overbought is oversold, where a security is thought to be trading below its intrinsic value.