Cimarex Energy Co. (XEC) made a low in June and retested in July and August. Prices are now above the rising 50-day simple moving average line. Is it safe to do some buying in Action Alerts PLUS name XEC? Let's check the charts and indicators for clues.
In this daily bar chart of XEC, below, we can see that the 200-day moving average line is declining while the 50-day line is rising. The daily On-Balance-Volume (OBV) line has been flat since June but looks like it is slowly improving since mid-August. A rising OBV line signals to me that buyers have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line or in positive territory.
In this weekly bar chart of XEC, below, we can see that prices are below the declining 40-week moving average line. The weekly OBV line has improved the past two months and the weekly MACD oscillator crossed to the upside last month for a cover shorts buy signal.
Bottom line: XEC is slowly improving. More sideways price action is likely and maybe even another test of the July or August lows.