Over the past five sessions, First Trust Health Care AlphaDEX ETF (FXH) has rallied into resistance near its previous swing high of $31.45. Over the past two sessions, FXH has show signs of pulling back from this key mark. FXH offers a buying opportunity under two scenarios. The first would be a pullback buy entry into support of the 20-day EMA and the uptrend line. An alternative entry could develop if FXH consolidates just below resistance over the next 5 to 10 days. Under either circumstance, we would only enter a long position in this ETF if it provide an appropriate “setup”. Typically we will look to enter above a reversal candle, much like the one formed on June 18th. Given the relative strength exhibited by this ETF (It’s near a 52-week high), we will continue to monitor it closely for a possible buy entry.
