HighPriestess .. charts are misleading sometimes. if charts are so dependable, everyone will be Buffett. Your own DD is the best tool. Try to read Bio's post#123695. All about KAT. Good luck to you.
So how do I tell if the stock is Oversold or Overbought?
I wish I could give you a simple magic indicator but it is much more involved than that. Simple indicators can remain very oversold or overbought for some time. You have to have a real feel for the stock, and enough experience to sense things like capitulation selling. For me is a "gut feel thing" based on years and years of trading.