In trading on Friday, shares of the ChinaAMC SME-ChiNext ETF ( CNXT) entered into oversold territory, changing hands as low as $44.90 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 ChinaAMC SME-ChiNext, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 50.8. A bullish investor could look at CNXT's 29.2 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), CNXT's low point in its 52 week range is $24.84 per share, with $66.04 as the 52 week high point — that compares with a last trade of $45.19. ChinaAMC SME-ChiNext shares are currently trading down about 15% on the day.