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In trading on Tuesday, shares of the iShares U.S. Financial Services ETF (NYSE:IYG) entered into oversold territory, changing hands as low as $155.51 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 U.S. Financial Services, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 31.7.

A bullish investor could look at IYG's 28.7 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), IYG's low point in its 52 week range is $137.46 per share, with $176.73 as the 52 week high point — that compares with a last trade of $155.55. iShares U.S. Financial Services shares are currently trading down about 1.4% on the day.