In trading on Monday, shares of the iShares MSCI Malaysia ETF (EWM - Get Report) entered into oversold territory, changing hands as low as $8.05 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 Malaysia, the RSI reading has hit 29.1 — by comparison, the RSI reading for the S&P 500 is currently 47.6.

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

A bullish investor could look at EWM's 29.1 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), EWM's low point in its 52 week range is $7.11 per share, with $13.80 as the 52 week high point — that compares with a last trade of $8.05. iShares MSCI Malaysia shares are currently trading down about 2.1% on the day.

iShares MSCI Malaysia 1 Year Performance Chart