In trading on Friday, shares of the First Trust Industrials/Producer Durables AlphaDEX Fund ETF (Symbol: FXR) entered into oversold territory, changing hands as low as $75.1223 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 Industrials/Producer Durables AlphaDEX Fund, the RSI reading has hit 29.97 — by comparison, the RSI reading for the S&P 500 is currently 45.7.
A bullish investor could look at FXR’s 29.97 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), FXR’s low point in its 52 week range is $62.5192 per share, with $83.71 as the 52 week high point — that compares with a last trade of $75.40. First Trust Industrials/Producer Durables AlphaDEX Fund shares are currently trading down about 1.1% on the day.
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