KBWY Crowded With Sellers

In trading on Friday, shares of the PowerShares KBW Premium Yield Equity REIT Portfolio ETF (KBWY) entered into oversold territory, changing hands as low as $31.801 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 KBW Premium Yield Equity REIT Portfolio, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 49.3.

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

A bullish investor could look at KBWY'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), KBWY's low point in its 52 week range is $28.38 per share, with $33.77 as the 52 week high point — that compares with a last trade of $31.88. PowerShares KBW Premium Yield Equity REIT Portfolio shares are currently trading off about 3.2% on the day.

PowerShares KBW Premium Yield Equity REIT Portfolio 1 Year Performance Chart

More from Stocks

Coke's a Better Stock to Buy Than Pepsi on Surprising North America Sales
Amazon Crushes Quarterly Earnings Estimates, Raises the Price of Prime

Amazon Crushes Quarterly Earnings Estimates, Raises the Price of Prime

Barbie Flexes Her Muscle in Mattel's Q1 Earnings

Barbie Flexes Her Muscle in Mattel's Q1 Earnings

Amazon Crushes First-Quarter Profit Estimates -- Watch TheStreet's Live Analysis

Amazon Crushes First-Quarter Profit Estimates -- Watch TheStreet's Live Analysis

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb