In trading on Friday, shares of the First Trust Consumer Staples AlphaDEX Fund ETF (Symbol: FXG) entered into oversold territory, changing hands as low as $60.31 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 Consumer Staples AlphaDEX Fund, the RSI reading has hit 29.9 — by comparison, the RSI reading for the S&P 500 is currently 75.7.
A bullish investor could look at FXG’s 29.9 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), FXG’s low point in its 52 week range is $59.67 per share, with $69.50 as the 52 week high point — that compares with a last trade of $60.65. First Trust Consumer Staples AlphaDEX Fund shares are currently trading off about 0.1% on the day.
Find out what 9 other oversold stocks you need to know about »
Also see:
• 10 Components Hedge Funds Are Selling
• Funds Holding EXLS
• Blue Chip Dividend Stocks Hedge Funds Are Selling
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
