First Trust Health Care AlphaDEX Fund Getting Very Oversold

In trading on Wednesday, shares of the First Trust Health Care AlphaDEX Fund ETF (Symbol: FXH) entered into oversold territory, changing hands as low as $72.10 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 First Trust Health Care AlphaDEX Fund, the RSI reading has hit 29.4 — by comparison, the RSI reading for the S&P 500 is currently 68.1. A bullish investor could look at FXH's 29.4 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), FXH's low point in its 52 week range is $63.8401 per share, with $85.3074 as the 52 week high point — that compares with a last trade of $72.32. First Trust Health Care AlphaDEX Fund shares are currently trading off about 2.4% on the day.

First Trust Health Care AlphaDEX Fund 1 Year Performance Chart

Click here to find out what 9 other oversold dividend stocks you need to know about »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.