In trading on Wednesday, shares of the iShares S&P Global Energy Sector Index Fund ETF (IXC) entered into oversold territory, changing hands as low as $37.23 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 iShares S&P Global Energy Sector Index Fund, the RSI reading has hit 29.8 — by comparison, the RSI reading for the S&P 500 is currently 31.2.

A bullish investor could look at IXC'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), IXC's low point in its 52 week range is $33.56 per share, with $42.19 as the 52 week high point — that compares with a last trade of $37.23. iShares S&P Global Energy Sector Index Fund shares are currently trading down about 0.3% on the day.