In trading on Friday, shares of the Proshares UltraShort Financials ETF (SKF) entered into oversold territory, changing hands as low as $26.14 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 Financials, the RSI reading has hit 30.0 — by comparison, the RSI reading for the S&P 500 is currently 61.5.

A bullish investor could look at SKF's 30.0 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), SKF's low point in its 52 week range is $26.14 per share, with $53.15 as the 52 week high point — that compares with a last trade of $26.19. Proshares UltraShort Financials shares are currently trading down about 0.3% on the day.