In trading on Monday, shares of the PowerShares S&P 500 Downside Hedged Portfolio ETF (PHDG) entered into oversold territory, changing hands as low as $25.84 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 28.9 — by comparison, the RSI reading for the S&P 500 is currently 38.3. A bullish investor could look at PHDG's 28.9 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), PHDG's low point in its 52 week range is $25.84 per share, with $30.21 as the 52 week high point — that compares with a last trade of $25.89. PowerShares S&P 500 Downside Hedged Portfolio shares are currently trading off about 1.2% on the day.