Oversold Counters !

[gaj]

I think Aksh Optifiber is one of the oversold counters.

 

[misty]

nice idea to start such a thread .i think we shud take oversold counter as the one where all the negatives r built in.i think idbi is one such counter

 

[harmads]

Can you please explain this term "Oversold" and "Overbought" to me

Thanks

 

[misty]

well gaj may be indicating oversold stocks in terms of tech analysis.but myself investing on fundamental basis treat oversold stock as one in the price of which all the negatives r built in.for example ,sail was oversold at 45/-

 

[Traderji]

Can you please explain this term "Oversold" and "Overbought" to me

Thanks

The terms "overbought/oversold", as they are commonly (and loosely) used, tells us nothing in particular about the true nature of what is happening in the markets they only add to the confusion.

Overbought indicates a security has run up much more than is usual for the it in a given period of time. Conversely, oversold indicates a security has sold off much more than usual in a given amount of time.

 

[harmads]

The terms "overbought/oversold", as they are commonly (and loosely) used, tells us nothing in particular about the true nature of what is happening in the markets they only add to the confusion.

Overbought indicates a security has run up much more than is usual for the it in a given period of time. Conversely, oversold indicates a security has sold off much more than usual in a given amount of time.

Thankyou Traderji for a prompt reply..

Regards

 

[sharv]

hi,

nice thread.

one can use by utilising RSI indicator of TA also. Mostly attached
with major TA softwares such as Metastock,Amibroker etc.

thanks

sharv

 

[saamy]

I think PRICOL is oversold too.

 

[ppatodia]

Can i Please ask a question - if Aksh is oversold, will that mean its price is likely to increase in the near future?

 

[rajesh.sadhanala]

Can i Please ask a question - if Aksh is oversold, will that mean its price is likely to increase in the near future?

Hi

Its not always necessary that oversold counter should always have a trend reversal. It can also happen that it could be more bearish over a time during the downtrend.

You should always buy when a stock is picking up instead of buying it when it is in downward trend. Take an example u bought a stock considering it is gone low down but it can happen that another person bought the same share at much lower level, So u need to wait all the time till it goes up above ur levels to enjoy the benefits.

Pick a stock and enter in the rally and exit the rally before it finishes. Regarding Aks it still looking downward rally, to pick this stock the strong resistance would be 70 to break out. Hope it moves some sideway movement before it reaches 70 - 75 level before it break out. 55 is the support levels, if it breaks 55 then it would be more bearish.

I also suggest you go through urself before taking any decision, if u cannot go through then take suggest from Saint or Amit or vonteru.

Regards
Raj