FJP Crowded With Sellers

In trading on Tuesday, shares of the First Trust Japan AlphaDEX Fund ETF ( FJP) entered into oversold territory, changing hands as low as $41.93 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 Japan AlphaDEX Fund, the RSI reading has hit 28.3 — by comparison, the RSI reading for the S&P 500 is currently 36.9.

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A bullish investor could look at FJP's 28.3 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), FJP's low point in its 52 week range is $35.68 per share, with $47.50 as the 52 week high point — that compares with a last trade of $42.17. First Trust Japan AlphaDEX Fund shares are currently trading off about 2.1% on the day.

First Trust Japan AlphaDEX Fund 1 Year Performance Chart

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