In trading on Friday, shares of the First Trust Technology AlphaDEX Fund ETF (FXL) entered into oversold territory, changing hands as low as $19.85 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 Technology AlphaDEX Fund, the RSI reading has hit 27.0 — by comparison, the RSI reading for the S&P 500 is currently 30.8.

A bullish investor could look at FXL's 27.0 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), FXL's low point in its 52 week range is $17.35 per share, with $24.80 as the 52 week high point — that compares with a last trade of $19.90. First Trust Technology AlphaDEX Fund shares are currently trading off about 2.5% on the day.