The First Trust Energy AlphaDEX Fund (FXN Quick QuoteFXN - Free Report) is probably a suitable pick for investors looking for momentum. FXN hit a 52-week high and is up 59.6% from its 52-week low price of $8.87/share.

Let’s take a look at FXN and its near-term outlook to gauge where it might be headed.

FXN in Focus

The First Trust Energy AlphaDEX Fund is an exchange-traded fund. The investment objective of the fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the StrataQuant Energy Index. It has AUM of $591.1 million and charges an expense ratio of 64 basis points.

Why the Move?

Investors are closely tracking the energy sector, which is showing strength as global demand and economic growth levels are on the path of recovery from the pandemic lows. The coronavirus vaccine rollout is gradually controlling the outbreak's spread across the globe. The optimism surrounding the reopening of global economies and increasing demand is painting a rosy picture for the cyclical sectors.

Oil prices have been rising since the beginning of 2022. The upside in crude oil prices is triggered by various factors like easing Omicron variant concerns, supply shortages, and geopolitical tensions in Eastern Europe and the Middle East.This is making funds like FXN an impressive investment option.

More Gains Ahead?

It seems like the First Trust Energy AlphaDEX Fund will remain strong, with a positive weighted alpha of 56.80, which gives cues of a further rally.