In trading on Friday, shares of the PowerShares S&P 500 Downside Hedged Portfolio ETF ( PHDG) entered into oversold territory, changing hands as low as $28.92 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 S&P 500 Downside Hedged Portfolio, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 56.9. A bullish investor could look at PHDG's 29.8 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), PHDG's low point in its 52 week range is $26.90 per share, with $30.21 as the 52 week high point — that compares with a last trade of $28.99. PowerShares S&P 500 Downside Hedged Portfolio shares are currently trading trading flat on the day.