In trading on Wednesday, shares of the PowerShares California AMT-Free Municipal Bond Portfolio ETF ( PWZ) entered into oversold territory, changing hands as low as $25.31 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 California AMT-Free Municipal Bond Portfolio, the RSI reading has hit 27.6 — by comparison, the RSI reading for the S&P 500 is currently 42.2. A bullish investor could look at PWZ's 27.6 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), PWZ's low point in its 52 week range is $24.78 per share, with $26.95 as the 52 week high point — that compares with a last trade of $25.35. PowerShares California AMT-Free Municipal Bond Portfolio shares are currently trading off about 0.5% on the day.