In trading on Monday, shares of the Daily Energy Bear 3x Shares ETF (ERY) entered into oversold territory, changing hands as low as $7.71 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 Daily Energy Bear 3x Shares, the RSI reading has hit 29.7 — by comparison, the RSI reading for the S&P 500 is currently 75.9.

A bullish investor could look at ERY's 29.7 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), ERY's low point in its 52 week range is $7.71 per share, with $28.12 as the 52 week high point — that compares with a last trade of $7.73. Daily Energy Bear 3x Shares shares are currently trading off about 0.9% on the day.