(FEP) First Trust Europe AlphaDEX - Ratings and Ratios

The First Trust Europe AlphaDEX Fund is an exchange-traded fund (ETF) designed to outperform traditional European indices by investing in a selection of stocks from the NASDAQ Europe Index. The AlphaDEX methodology is used to identify stocks that are likely to generate positive alpha, or risk-adjusted returns, making it an attractive option for investors seeking to capitalize on European market opportunities.

The funds investment strategy involves allocating at least 90% of its net assets to the securities comprising the AlphaDEX index, which is constructed using a rules-based approach to select stocks with high potential for outperformance. By doing so, the fund aims to provide investors with a diversified portfolio of European stocks that are poised for growth.

Analyzing the funds recent performance, we can observe that its last price is $43.88, indicating a positive trend as it is above its 20-day, 50-day, and 200-day simple moving averages (SMA20: $42.50, SMA50: $41.49, SMA200: $38.29). The average true range (ATR) of 1.08, equivalent to 2.47%, suggests moderate volatility. Given the current price is near its 52-week high of $44.16 and significantly above its 52-week low of $34.84, it indicates a strong upward momentum.

Considering the funds assets under management (AUM) stand at $239.03 million, it suggests a reasonable level of investor interest and liquidity. By combining the technical indicators with the fundamental data, a forecast can be made. The upward trend, supported by the SMA indicators and the proximity to the 52-week high, suggests potential for further growth. However, the moderate volatility indicated by the ATR suggests that investors should be prepared for potential fluctuations.

Based on the analysis, a potential forecast is that the fund may continue its upward trend, potentially reaching $45.00 in the short term, driven by its positive momentum and the AlphaDEX selection methodology. Nonetheless, investors should closely monitor the funds performance and adjust their strategies according to changes in market conditions.