In trading on Monday, shares of the iShares MSCI Singapore Small-Cap ETF (EWSS) entered into oversold territory, changing hands as low as $28.22 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 Singapore Small-Cap, the RSI reading has hit 28.1 — by comparison, the RSI reading for the S&P 500 is currently 48.9.

Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at EWSS's 28.1 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), EWSS's low point in its 52 week range is $25.35 per share, with $30.87 as the 52 week high point — that compares with a last trade of $28.23. iShares MSCI Singapore Small-Cap shares are currently trading down about 1.1% on the day.

iShares MSCI Singapore Small-Cap 1 Year Performance Chart