First Trust Large Cap Core AlphaDEX Fund Getting Very Oversold
In trading on Friday, shares of the First Trust Large Cap Core AlphaDEX Fund ETF (Symbol: FEX) entered into oversold territory, changing hands as low as $102.18 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 Large Cap Core AlphaDEX Fund, the RSI reading has hit 28.7 — by comparison, the RSI reading for the S&P 500 is currently 33.2. A bullish investor could look at FEX's 28.7 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), FEX's low point in its 52 week range is $93.39 per share, with $113.17 as the 52 week high point — that compares with a last trade of $102.49. First Trust Large Cap Core AlphaDEX Fund shares are currently trading off about 0.5% on the day.
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