I think you need to top up quite a bit with such a low reading. It is a hard to read dipstick, but when it's more at the correct sort of level, I think you will find it a bit easier to read. I always take a few readings one after the other just to be sure, as you do get a splodge or two here and there which can confuse things a bit and have you wondering just where the level is exactly.
I'd also be a bit concerned as to how the level got so apparently low in the first place. Had mine ~9 years and never had the level go down really. I do check it now and again, but I don't recall ever needing to top it up. If I ever have done it would have only been a very small ammount, certainly nothing like the quantity yours seems to need. Once you get it topped up I'd keep quite a close eye on it to see if it maintains that level or starts going down.