DBE Crowded With Sellers

In trading on Thursday, shares of the PowerShares DB Energy Fund ETF ( DBE) entered into oversold territory, changing hands as low as $28.529 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 DB Energy Fund, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 50.7.

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

A bullish investor could look at DBE's 29.7 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), DBE's low point in its 52 week range is $27.31 per share, with $31.26 as the 52 week high point — that compares with a last trade of $28.53. PowerShares DB Energy Fund shares are currently trading off about 1.2% on the day.

PowerShares DB Energy Fund 1 Year Performance Chart

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