In trading on Thursday, shares of the PowerShares S&P SmallCap Energy Portfolio ETF ( PSCE) entered into oversold territory, changing hands as low as $47.05 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 Energy Portfolio, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 32.2. A bullish investor could look at PSCE's 29.1 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), PSCE's low point in its 52 week range is $40.84 per share, with $54.85 as the 52 week high point — that compares with a last trade of $47.10. PowerShares S&P SmallCap Energy Portfolio shares are currently trading down about 1.4% on the day.