In trading on Thursday, shares of the iShares MSCI Chile Capped ETF ( ECH) entered into oversold territory, changing hands as low as $38.33 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 Chile Capped, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 53.8. A bullish investor could look at ECH's 28.8 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), ECH's low point in its 52 week range is $37.45 per share, with $46.95 as the 52 week high point — that compares with a last trade of $38.78. iShares MSCI Chile Capped shares are currently trading down about 1.8% on the day.