In trading on Friday, shares of the PowerShares S&P SmallCap Consumer Discretionary Portfolio ETF (PSCD) entered into oversold territory, changing hands as low as $44.37 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 S&P SmallCap Consumer Discretionary Portfolio, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 33.6.

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A bullish investor could look at PSCD's 29.8 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), PSCD's low point in its 52 week range is $41.37 per share, with $49.91 as the 52 week high point — that compares with a last trade of $44.56. PowerShares S&P SmallCap Consumer Discretionary Portfolio shares are currently trading off about 0.4% on the day.

PowerShares S&P SmallCap Consumer Discretionary Portfolio 1 Year Performance Chart

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