CXO - Are we at the bottom and good to take a turn...

CXO - Are we at the bottom and good to take a turn yet?

9-Nov-2023 : Keeping it Simple with Price Action and Technical Analysis..

To answer the above question, in my opinion, it looks quite probable.
To have a view with more probability, we always need to span our horizon and look at the bigger picture.
Here is the CXO Daily chart from Jul'21 to date. This gives us a good perspective on the key levels. And when trading, it's ALWAYS advisable to trade near the key levels of support or resistance. As we can see below, the support and resistance levels for CXO are well established. [ GREEN Arrows -> Support, RED Arrows -> Resistance ]

* The long-term support that got set in Jul'22, got retested again in Apr'23, but we see the momentum had slowed down. That was an indication then, that the downtrend may continue, which it did.
* There is a well-established Resistance trend line [ in RED ], that has been tested quite a few times, and FAILED.
* The long term support level at around 0.365 in Sep'21, is now beiing "tested" again now since Sep'23.
* The retest seems to be succeding, as we can see a positive Bullish Divergence in RSI.
* Price is also near and has closed above the 40 MA.

What will I do now ?
* Adding position now gives me exposure with a small stop-loss in case this long-term support gets breached. The probability of this looks low, considering the points stated above.
* The first target can be the RED trend line, where it can be assessed if it has the strength to break out, or will retrace again.
* I can add more if that long-term trend line is successfully breached and held intact. That will be a switch from Resistance to Support.