In trading on Friday, shares of the SPDR Barclays Capital Long Term Treasury ETF (TLO) entered into oversold territory, changing hands as low as $68.636 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 SPDR Barclays Capital Long Term Treasury, the RSI reading has hit 23.6 — by comparison, the RSI reading for the S&P 500 is currently 80.2.

A bullish investor could look at TLO's 23.6 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), TLO's low point in its 52 week range is $64.13 per share, with $75.73 as the 52 week high point — that compares with a last trade of $68.64. SPDR Barclays Capital Long Term Treasury shares are currently trading off about 2.5% on the day.