In trading on Tuesday, shares of the Dynamic Banking Portfolio ETF (PJB) entered into oversold territory, changing hands as low as $10.62 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 Dynamic Banking Portfolio, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 34.4.

A bullish investor could look at PJB's 29.2 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), PJB's low point in its 52 week range is $10.25 per share, with $14.47 as the 52 week high point — that compares with a last trade of $12.99. Dynamic Banking Portfolio shares are currently trading off about 0.5% on the day.