In trading on Wednesday, shares of the Proshares UltraShort FTSE China 25 ETF (FXP) entered into oversold territory, changing hands as low as $21.08 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 Proshares UltraShort FTSE China 25, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 40.0.

A bullish investor could look at FXP's 29.5 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), FXP's low point in its 52 week range is $20.83 per share, with $35.37 as the 52 week high point — that compares with a last trade of $21.31. Proshares UltraShort FTSE China 25 shares are currently trading off about 2% on the day.