overbought

adjective

over·​bought ˌō-vər-ˈbȯt How to pronounce overbought (audio)
: 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 Given such strong relative performance, sectors within the municipal bond market could be considered overbought for some investors, so proceed with caution. Chris Gunster, Forbes, 27 Mar. 2024 The short-term hourly relative strength index has continued to indicate bearish momentum readings after a bearish divergence at the overbought territory on Nov. 22, the analyst says. WSJ, 24 Nov. 2023 The Nasdaq 100 is flashing a technical warning sign, with its relative strength index nearing the overbought level — indicating a risk of correction in the near future. Jeran Wittenstein, Fortune, 17 Nov. 2023 This is indicated by the sharp pullback in overbought conditions and swiftly deteriorating upward momentum, the strategist says. WSJ, 3 Nov. 2023 The shares were trading higher 0.4% on Tuesday, still remaining in overbought territory. Jeran Wittenstein, Fortune, 16 May 2023 The weekly chart for the S&P 500 (4,180.38) is positive but extremely overbought. Richard Henry Suttmeier, Forbes, 26 Apr. 2021 The weekly chart for the Dow Jones Industrial Average (.DJI) is positive but extremely overbought. Richard Henry Suttmeier, Forbes, 19 Apr. 2021 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, 5 Jan. 2019

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'overbought.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1925, in the meaning defined above

Time Traveler
The first known use of overbought was in 1925

Dictionary Entries Near overbought

Cite this Entry

“Overbought.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/overbought. Accessed 28 Apr. 2024.

Last Updated: - Updated example sentences
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