In trading on Wednesday, shares of the Steel ETF (SLX) entered into oversold territory, changing hands as low as $36.92 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 Steel, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 57.1. A bullish investor could look at SLX's 29.9 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), SLX's low point in its 52 week range is $36.90 per share, with $50.48 as the 52 week high point — that compares with a last trade of $37.09. Steel shares are currently trading down about 1.3% on the day.