Shares Of FXN Now Oversold

In trading on Monday, shares of the First Trust Energy AlphaDEX Fund ETF (FXN) entered into oversold territory, changing hands as low as $19.89 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 Energy AlphaDEX Fund, the RSI reading has hit 29.0 — by comparison, the RSI reading for the S&P 500 is currently 38.3.

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A bullish investor could look at FXN's 29.0 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), FXN's low point in its 52 week range is $18.41 per share, with $29.43 as the 52 week high point — that compares with a last trade of $19.92. First Trust Energy AlphaDEX Fund shares are currently trading down about 2.4% on the day.

First Trust Energy AlphaDEX Fund 1 Year Performance Chart

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