Cairn Energy – CNE – sparks into life

CNE
Cairn Energy PLC

UK FTSE Oil & Gas Company Cairn Energy finally broke through its downward trend this week.

Reasons to buy

  • Broken downward trend
  • Above weekly RSI support line
  • Long term MACD broke trend

I brought into this share earlier this week after having it on my watch list for some time. Patience has been the key here and I’m hoping the patience is going to pay off with this share. Since the back end of October the share has tried to break the weekly trend line it has been on but every week it ended up closing below the trend line.

When that pattern broke last week and the price close above the trend I decided it was time to get into this share as a new swimmer!

With both MACDs in positive positions it only adds strength to the reversal of the downward trend.

Finally the weekly RSI value has spent time testing and bouncing back up from the support line.

This is my opinion, I’d love to know if people think the same way as me, so let me know. I’ll report back on how I get on.