what is oversold 
the term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce 1 an oversold condition can last for a long time and therefore being oversold doesn t mean a price rally will come soon or at all many technical indicators identify oversold and overbought levels these indicators base their assessment on where the price is currently trading relative to prior prices fundamentals can also be used to assess whether an asset is potentially oversold and has deviated from its typical value metrics 