Ichimoku Watch: Dow’s Correction a Dip Buying Opportunity?
Ichimoku Support Calling Dip Buyers
Following the Dow Jones Industrial Average (Dow) refreshing all-time highs on Thursday at 41,414, the day ended as a bearish outside reversal.
While the bearish outside reversal could trigger an extended retracement slide, all of the Ichimoku Indicator’s signals are bullish. For example, price action is trading firmly beneath the Lagging Span (green at 40,589), and the Conversion Line (blue at 40,277) crossed above the Base Line (red at 39,848) at the end of June. On top of this, the Leading Span A (light green at 40,062) crossed above the Leading Span B (light orange at 39,717) in mid-June to form an Ichimoku Cloud.
What is key on this daily chart is that the Base Line and the Conversion Line at 39,848-40,277 represent a possible support zone that brings together a horizontal support line at 39,993 and a trendline support (from the low of 32,312).
Price Direction?
With the trend firmly to the upside and the support area between 39,848 and 40,277 commanding attention, this remains a buyers’ market. If tested, the question is whether dip buyers will make a show from the aforementioned support zone and attempt to challenge highs.
Following the Dow Jones Industrial Average (Dow) refreshing all-time highs on Thursday at 41,414, the day ended as a bearish outside reversal.
While the bearish outside reversal could trigger an extended retracement slide, all of the Ichimoku Indicator’s signals are bullish. For example, price action is trading firmly beneath the Lagging Span (green at 40,589), and the Conversion Line (blue at 40,277) crossed above the Base Line (red at 39,848) at the end of June. On top of this, the Leading Span A (light green at 40,062) crossed above the Leading Span B (light orange at 39,717) in mid-June to form an Ichimoku Cloud.
What is key on this daily chart is that the Base Line and the Conversion Line at 39,848-40,277 represent a possible support zone that brings together a horizontal support line at 39,993 and a trendline support (from the low of 32,312).
Price Direction?
With the trend firmly to the upside and the support area between 39,848 and 40,277 commanding attention, this remains a buyers’ market. If tested, the question is whether dip buyers will make a show from the aforementioned support zone and attempt to challenge highs.
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