In trading on Friday, shares of the PowerShares Emerging Markets Sovereign Debt Portfolio ETF (Symbol: PCY) entered into oversold territory, changing hands as low as $27.44 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 PowerShares Emerging Markets Sovereign Debt Portfolio, the RSI reading has hit 27.9 - by comparison, the RSI reading for the S&P 500 is currently 40.5. A bullish investor could look at PCY's 27.9 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), PCY's low point in its 52 week range is $26.73 per share, with $29.09 as the 52 week high point - that compares with a last trade of $27.46. PowerShares Emerging Markets Sovereign Debt Portfolio shares are currently trading down about 0.7% on the day.