PowerShares DWA Healthcare Momentum Portfolio (PTH) Enters Oversold Territory

In trading on Friday, shares of the PowerShares DWA Healthcare Momentum Portfolio ETF (PTH) entered into oversold territory, changing hands as low as $42.75 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 DWA Healthcare Momentum Portfolio, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 40.4.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at PTH's 29.4 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), PTH's low point in its 52 week range is $37.84 per share, with $52.64 as the 52 week high point — that compares with a last trade of $42.84. PowerShares DWA Healthcare Momentum Portfolio shares are currently trading down about 2.9% on the day.

PowerShares DWA Healthcare Momentum Portfolio 1 Year Performance Chart

More from Stocks

Lowe's Taps Home Depot Veteran As New CEO

Lowe's Taps Home Depot Veteran As New CEO

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

WATCH: 4 Experts Lay Out How Wealthy Investors Should Play Today's Risky Market

WATCH: 4 Experts Lay Out How Wealthy Investors Should Play Today's Risky Market

These 5 Autonomous Driving Stocks Are Flashing Buy Signals

These 5 Autonomous Driving Stocks Are Flashing Buy Signals

Stocks Waver Amid Progress on U.S.-China Trade; Dow Slips

Stocks Waver Amid Progress on U.S.-China Trade; Dow Slips