The Dow Jones Industrial Average (DJIA) hit an all-time high of 41,420 on Monday and formed what many will note as a bearish pin bar or ‘shooting star’. This candlestick formation shows buying pressure failed to maintain its momentum and sold off into the close. Candlestick traders, therefore, may view this as a sign that a correction could be seen.

Ichimoku Support

Should a correction unfold in this market, the Ichimoku Indicator offers a handful of support areas to consider, which could tempt dip buyers to enter.

The area between the Ichimoku Cloud, the Leading Span B (light orange at 39,862) and the Leading Span A (light green at 40,269) may be an area that encourages buying if tested. This is also bolstered by the Base Line (red at 39,959) as well as the market index continuing to trade below its Lagging Span (dark green at 41,240).

Price Direction

The trend is favouring buyers in the DJIA. However, many will find it challenging to enter long at all-time highs, fearing a correction emerging. As a result, dip buyers may consider waiting and seeing if price retests the Ichimoku Cloud before considering another bullish scenario.

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