In trading on Friday, shares of the Tradr 2X Short TSLA Daily ETF (TSLQ) entered into oversold territory, changing hands as low as $10.50 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 Tradr 2X Short TSLA Daily, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 66.1.

A bullish investor could look at TSLQ's 27.5 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), TSLQ's low point in its 52 week range is $10.50 per share, with $162.36 as the 52 week high point — that compares with a last trade of $10.85. Tradr 2X Short TSLA Daily shares are currently trading down about 10.5% on the day.