PDBC Crosses Critical Technical Indicator

In trading on Thursday, shares of the Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (Symbol: PDBC) entered into oversold territory, changing hands as low as $13.38 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of Invesco Optimum Yield Diversified Commodity Strategy No K-1, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 40.8. A bullish investor could look at PDBC's 29.5 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), PDBC's low point in its 52 week range is $13.38 per share, with $20.7599 as the 52 week high point — that compares with a last trade of $13.39. Invesco Optimum Yield Diversified Commodity Strategy No K-1 shares are currently trading down about 1.4% on the day.

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