PowerShares Global Short Term High Yield Bond Portfolio (PGHY) Enters Oversold Territory

In trading on Friday, shares of the PowerShares Global Short Term High Yield Bond Portfolio ETF (PGHY) entered into oversold territory, changing hands as low as $23.4867 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 Short Term High Yield Bond Portfolio, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 45.8.

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A bullish investor could look at PGHY's 29.5 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), PGHY's low point in its 52 week range is $23.48 per share, with $26.16 as the 52 week high point — that compares with a last trade of $23.49. PowerShares Global Short Term High Yield Bond Portfolio shares are currently trading down about 0.4% on the day.

PowerShares Global Short Term High Yield Bond Portfolio 1 Year Performance Chart

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