In trading on Wednesday, shares of Nabors Industries Ltd. (NBR - Get Report) entered into oversold territory, changing hands as low as $5.65 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 Nabors Industries Ltd., the RSI reading has hit 28.0 — by comparison, the universe of energy stocks covered by Energy Stock Channel currently has an average RSI of 43.7, the RSI of WTI Crude Oil is at 64.4, the RSI of Henry Hub Natural Gas is presently 51.4, and the 3-2-1 Crack Spread RSI is 61.8.

Click here to find out which 9 other oversold energy stocks you need to know about »

A bullish investor could look at NBR's 28.0 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), NBR's low point in its 52 week range is $5.65 per share, with $18.40 as the 52 week high point — that compares with a last trade of $5.84. Nabors Industries Ltd. shares are currently trading off about 8.8% on the day.

Nabors Industries Ltd. 1 Year Performance Chart

According to the ETF Finder at ETF Channel, NBR makes up 3.00% of the SPDR S&P Oil & Gas Equipment & Services ETF ( XES) which is trading lower by about 1.6% on the day Wednesday.