He can use rsi, stochastic, statistical arbitrage and so on. The answer is fair value. Very Usual Aaii Sentiment Reading - Theo Trade Tech Stocks Sentimental Equity Market So, there might be bearish implications of this, but at the same time, there are higher chances that the markets may not suffer much from this and may see a technical pullback. Is an oversold stock bad . These are the key technical levels to monitor. Oversold stocks can be a great opportunity to make gains. Undervalued stocks — us stock market. “oversold” means the stock price has taken a nosedive, and theoretically selling pressures have exhausted and people may be willing to start buying it again, driving the price back up. As opposed to overbought, oversold means that stock prices have decreased substantially. Another scenario is when large buyers take out stop orders before the subsequent repurchase at a better price. “investors now seem to accept the omicron variant as just a new fact of li...