In trading on Friday, shares of the Guggenheim China Small Cap ETF ( HAO) HAO entered into oversold territory, changing hands as low as $22.13 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 Guggenheim China Small Cap, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 47.8. A bullish investor could look at HAO'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), HAO's low point in its 52 week range is $18.41 per share, with $25.67 as the 52 week high point — that compares with a last trade of $22.23. Guggenheim China Small Cap shares are currently trading down about 2.7% on the day.