In trading on Tuesday, shares of the First Trust Materials AlphaDEX Fund ETF (FXZ - Get Report) entered into oversold territory, changing hands as low as $31.98 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 Materials AlphaDEX Fund, the RSI reading has hit 28.8 — by comparison, the RSI reading for the S&P 500 is currently 48.3. A bullish investor could look at FXZ's 28.8 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), FXZ's low point in its 52 week range is $28.38 per share, with $34.52 as the 52 week high point — that compares with a last trade of $32.09. First Trust Materials AlphaDEX Fund shares are currently trading off about 1.1% on the day.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
A Primer for the Pinterest Public Offering on Thursday
The company is a total ROI story, but can it share positive returns with IPO investors?
Skechers Shares Crater After Footwear Maker Misses Earnings Estimates
Skechers misses first-quarter earnings and sales estimates, and its second-quarter profit guidance is below forecasts.
Why Jim Cramer Thinks Pinterest's Growth Is 'Extraordinary'
As Pinterest IPO's at $19 per share in its initial public offering. Watch the video to hear what Jim Cramer has to say about the company's growth.
DowDuPont Says Guidance Cut Was Due to Midwest Storms' Affect on Agro Business
DowDuPont first lowered first-quarter guidance on March 28. It explained why it did so on Thursday.