In trading on Tuesday, shares of the Proshares UltraShort Basic Materials ETF ( SMN) entered into oversold territory, changing hands as low as $38.12 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 Basic Materials, the RSI reading has hit 27.5 — by comparison, the RSI reading for the S&P 500 is currently 71.3. A bullish investor could look at SMN'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), SMN's low point in its 52 week range is $38.12 per share, with $66.64 as the 52 week high point — that compares with a last trade of $38.15. Proshares UltraShort Basic Materials shares are currently trading down about 2.3% on the day.