It compares the average of gains that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought
, a reading below 30 suggests undervalued asset.
On the MICEX market has to pass the level in 1415 points, but overcome its local rolling back down will be difficult, especially in view of the available overbought
, so the show recoilless growth with the same rate will not be easy.
We are in a correction trend in the UAE and we need it," Sebastien Henin, portfolio manager at The National Investor, told Reuters, adding that the overbought
market condition was getting risky.
Since October 4, public funds and government-invested banks have continuously overbought
stocks for 14 trading sessions, totaling NT$11 billion in scale.
The primary function for which the Stochastics is used is the identification of overbought
and oversold areas.
This week the result of ECB session will be the most remarkable factor for the markets - in case the European bank does not justify hopes of the investors for any kind of stimulation measures that might trigger correction due to current conditions of markets being overbought
The accumulated net overbought
position by foreign investors, during the period year to Aug.
Of the 10 major stocks overbought
by foreign investors yesterday, financial stocks accounted for five.
However, the upper and lower lines (marking the overbought
and oversold levels) are at the 80 and 20 levels.
The yield on the benchmark 10-year Japanese government bond closed slightly higher Monday as market participants saw bonds as overbought
and were tentative ahead of a five-year bond auction later this week.
Traders said the sell-off was expected since the market was overbought
On 12/03 we stated our opinion that, given the then substantially overbought
condition of the McClellan Oscillator, it was likely the equity markets would see a drop in prices regardless of the Fed's decision on interest rates.