SP 500 Futures Renko Chart Technical Analysis 5/13/21

Overview

SP 500 Futures rebounded sharply today because of the short term oversold situation. In addition, it got the support from the uptrend trendline that connected the two lows, 3246 and 3756. Technology shares were particularly strong and bid up sharply higher after the recent sell-off except Tesla, which continued to move lower. Again, the SP 500 Futures Renko chart technical analysis is used to identify the near term support and resistance.

  • The Renko chart uses a traditional 6-point brick size.
  • On the upside, 4128 / 4164 is the first resistance zone.
  • On the downside, 4050 / 3960 is the next support zone.
  • Psychological barriers: 4100 / 4000

What Happened

SP 500 Futures reversed course today after reaching 4030 overnight. The uptrend trendline from 3246 to 3756 provided the much needed support. Right now, the uptrend still holds. SP 500 Futures closed just shy of the resistance, 4128.

What’s Next

  • On the upside, 4128 / 4164 is the immediate resistance for SP 500 FUTURES.
  • On the downside, 4050 / 3960 should provide good support.
  • 4000 is more likely a psychological support.

Below is the daily Renko chart

Renko Chart Technical Analysis SP 500 Futures Support and Resistance and Trendlines

How to Use Renko Chart Technical Analysis in Trading – Use Support, Resistance, and Trendline

Since the price movement is key to a Renko chart, the chart itself looks cleaner in comparison to a traditional bar chart or candlestick chart. Therefore, Renko charts eliminate noise and made it easier to see a trend or pattern such as double bottom, W, or double top, M.
Another benefit of the Renko charts is conducting technical analysis is a lot simpler. Identifying a trend or pattern is relatively effortless, as well as the support and resistance.

Using the trendline and the support / resistance lines in today’s SP 500 Futures Renko chart, trading opportunities or decisions could be formulated. SP 500 is currently below the 4128 resistance. 4050 support has been confirmed which was the uptrend trendline. 4164 / 4176 zone could be a bit tricky since a lot of actions have taken place in this area. Only if SP 500 firmly stood above 4164 / 4176, it could have another chance to retest 4230. The good news for the bulls is the uptrend is still holding; i.e. the trendline connects the previous lows, 3246 to 3756.

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