In trading on Friday, shares of the iShares MSCI Australia Index Fund ETF (EWA) entered into oversold territory, changing hands as low as $24.94 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 MSCI Australia Index Fund, the RSI reading has hit 26.5 — by comparison, the RSI reading for the S&P 500 is currently 54.6. A bullish investor could look at EWA's 26.5 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), EWA's low point in its 52 week range is $20.35 per share, with $28.15 as the 52 week high point — that compares with a last trade of $24.96. iShares MSCI Australia Index Fund shares are currently trading off about 3.7% on the day.