PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) Enters Oversold Territory

In trading on Friday, shares of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ) entered into oversold territory, changing hands as low as $42.54 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 Dynamic Leisure and Entertainment Portfolio, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 32.0.

START SLIDESHOW:
Click here to find out what 9 other oversold dividend stocks you need to know about »

A bullish investor could look at PEJ'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), PEJ's low point in its 52 week range is $39.50 per share, with $46.77 as the 52 week high point — that compares with a last trade of $43.15. PowerShares Dynamic Leisure and Entertainment Portfolio shares are currently trading down about 1.8% on the day.

PowerShares Dynamic Leisure and Entertainment Portfolio 1 Year Performance Chart

More from Stocks

Procter & Gamble Helps Lead Dow Jones After Upgrade From Morgan Stanley

Procter & Gamble Helps Lead Dow Jones After Upgrade From Morgan Stanley

Hey Investors, Don't Let the Bad Times Pollute Your Mind

Hey Investors, Don't Let the Bad Times Pollute Your Mind

Make This Dividend Aristocrat a Staple of Your Portfolio

Make This Dividend Aristocrat a Staple of Your Portfolio

Join Jim Cramer's Club During Our '12 Days of Holiday Deals' Sale and Save 66%!

Join Jim Cramer's Club During Our '12 Days of Holiday Deals' Sale and Save 66%!

It's Harvest Season for Tax Losses

It's Harvest Season for Tax Losses