In trading on Wednesday, shares of the iShares Global Timber & Forestry ETF (WOOD) entered into oversold territory, changing hands as low as $49.11 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 Global Timber & Forestry, the RSI reading has hit 29.5 — by comparison, the RSI reading for the S&P 500 is currently 35.8.

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A bullish investor could look at WOOD's 29.5 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), WOOD's low point in its 52 week range is $46.67 per share, with $54.32 as the 52 week high point — that compares with a last trade of $49.55. iShares Global Timber & Forestry shares are currently trading trading flat on the day.

iShares Global Timber & Forestry 1 Year Performance Chart