FYX Crowded With Sellers

In trading on Wednesday, shares of the First Trust Small Cap Core AlphaDEX Fund ETF (FYX) entered into oversold territory, changing hands as low as $45.63 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 Small Cap Core AlphaDEX Fund, the RSI reading has hit 29.2 — by comparison, the RSI reading for the S&P 500 is currently 36.9.

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

A bullish investor could look at FYX's 29.2 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), FYX's low point in its 52 week range is $37.41 per share, with $50.23 as the 52 week high point — that compares with a last trade of $45.84. First Trust Small Cap Core AlphaDEX Fund shares are currently trading down about 0.6% on the day.

First Trust Small Cap Core AlphaDEX Fund 1 Year Performance Chart

More from Stocks

Cloud and Defense Stocks Could Be Big Winners in a Trade War

Cloud and Defense Stocks Could Be Big Winners in a Trade War

Video: Marriott CEO on Trade War Worries and China's Economy

Video: Marriott CEO on Trade War Worries and China's Economy

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

50 Stocks Goldman Sachs Thinks Can Triumph Over Labor Inflation

50 Stocks Goldman Sachs Thinks Can Triumph Over Labor Inflation

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know

Trump Issues New Trade Threats, Apple, ZTE, GameStop - 5 Things You Must Know