FLN Crosses Critical Technical Indicator

Tickers in this article: FLN
In trading on Friday, shares of the First Trust Latin America AlphaDEX Fund ETF entered into oversold territory, changing hands as low as $22.27 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 Latin America AlphaDEX Fund, the RSI reading has hit 29.97 — by comparison, the RSI reading for the S&P 500 is currently 49.9.

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A bullish investor could look at FLN'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), FLN's low point in its 52 week range is $21.19 per share, with $28.92 as the 52 week high point — that compares with a last trade of $22.27. First Trust Latin America AlphaDEX Fund shares are currently trading off about 2.7% on the day.

First Trust Latin America AlphaDEX Fund 1 Year Performance Chart