First Trust Small Cap Growth AlphaDEX Fund (FYC) Enters Oversold Territory
ETF Channel Staff - Friday, October 27, 4:00 PMIn trading on Friday, shares of the First Trust Small Cap Growth AlphaDEX Fund ETF (FYC) entered into oversold territory, changing hands as low as $51.5299 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 Growth AlphaDEX Fund, the RSI reading has hit 29.3 — by comparison, the RSI reading for the S&P 500 is currently 27.1.
A bullish investor could look at FYC's 29.3 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), FYC's low point in its 52 week range is $51.5299 per share, with $63.88 as the 52 week high point — that compares with a last trade of $51.59. First Trust Small Cap Growth AlphaDEX Fund shares are currently trading off about 1.1% on the day.
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