(FXR) First Trust - Ratings and Ratios

The First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) is an actively managed ETF that focuses on capturing alpha in the industrials and producer durables sectors by employing a rules-based stock selection methodology. By investing at least 90% of its net assets in the securities that comprise its underlying index, the fund aims to provide investors with exposure to a diversified portfolio of stocks that have been objectively selected based on their potential to outperform traditional passive indices.

The AlphaDEX selection methodology used by FXR is designed to identify stocks with high potential for alpha generation by analyzing various fundamental and quantitative factors. This approach enables the fund to tilt towards stocks that exhibit strong characteristics, such as robust growth, profitability, and momentum, while minimizing exposure to weaker stocks. As a result, FXR offers investors a unique blend of industrials and producer durables stocks that are poised for outperformance.

From a technical analysis perspective, FXRs current price is $71.59, which is slightly below its 20-day simple moving average (SMA) of $72.23, indicating a potential short-term weakness. However, the funds 50-day SMA of $69.10 is trending upwards, suggesting a longer-term uptrend. With an average true range (ATR) of 1.00, representing a 1.39% daily price movement, FXRs volatility is relatively moderate. Given its 52-week high and low of $82.96 and $60.85, respectively, FXR has demonstrated a significant price range, highlighting the potential for both upside and downside movements.

Combining technical and fundamental insights, a forecast for FXR can be constructed. With a strong AUM of $1.778 billion, FXR has a solid foundation for continued investment. Considering the current technical indicators, a potential short-term correction may be followed by a longer-term uptrend. If the 50-day SMA continues to trend upwards and the funds price breaks above its 20-day SMA, it may signal a buying opportunity, potentially driving the price towards its 200-day SMA of $74.00. However, if the price fails to break above the 20-day SMA and instead continues to trend downwards, it may indicate a deeper correction, potentially testing the 52-week low.