KBWD Crosses Critical Technical Indicator

In trading on Monday, shares of the PowerShares KBW High Dividend Yield Financial Portfolio ETF (KBWD) entered into oversold territory, changing hands as low as $24.60 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 High Dividend Yield Financial Portfolio, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 35.8.

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

A bullish investor could look at KBWD's 29.9 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), KBWD's low point in its 52 week range is $22.60 per share, with $26.36 as the 52 week high point — that compares with a last trade of $24.61. PowerShares KBW High Dividend Yield Financial Portfolio shares are currently trading off about 1% on the day.

PowerShares KBW High Dividend Yield Financial Portfolio 1 Year Performance Chart

More from Stocks

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Key Numbers to Watch as Amazon, Microsoft and Intel Report Earnings on Thursday

Key Numbers to Watch as Amazon, Microsoft and Intel Report Earnings on Thursday

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

3 New Investing Myths That Must Be Busted

3 New Investing Myths That Must Be Busted

Why a Global Stock Market Crash Is Coming

Why a Global Stock Market Crash Is Coming