PSP Crosses Critical Technical Indicator

In trading on Wednesday, shares of the PowerShares Global Listed Private Equity Portfolio ETF ( PSP) entered into oversold territory, changing hands as low as $11.17 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 Global Listed Private Equity Portfolio, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 51.5.

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

A bullish investor could look at PSP'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), PSP's low point in its 52 week range is $11.17 per share, with $15.95 as the 52 week high point — that compares with a last trade of $11.23. PowerShares Global Listed Private Equity Portfolio shares are currently trading off about 0.7% on the day.

PowerShares Global Listed Private Equity Portfolio 1 Year Performance Chart

If you liked this article you might like

KKR Hitches a Ride With Lyft in $600M Series G Round

KKR Hitches a Ride With Lyft in $600M Series G Round

PepsiCo to Report Earnings Before Opening Bell Thursday

PepsiCo to Report Earnings Before Opening Bell Thursday

PSP Makes Bullish Cross Above Critical Moving Average

PSP Makes Bullish Cross Above Critical Moving Average

Global Private Equity ETFs Live and Die by the Sword

Global Private Equity ETFs Live and Die by the Sword

Using an ETF Portfolio to Mimic an Endowment Portfolio

Using an ETF Portfolio to Mimic an Endowment Portfolio