Technical Analysis and Forecast
The SP 500 FUTURES traded lower overnight, but moved sharply higher during the U.S. session. It looks as though it has finally stood firmly above 4200. Based on the Renko chart technical analysis and forecast, things have looked better to the upside.
- The Renko chart uses a traditional 6-point brick size.
- On the upside, 4224 / 4230 is the immediate resistance zone.
- Once the SP 500 Futures closes above 4225, it is going to be an all time high.
- On the downside, 4200 is the immediate support, followed by the strong support zone, 4164 / 4176.
The SP 500 Futures appears to break above 4200 finally today. It reached 4211 early in the morning and then traded sideways. It closed at 4199; however, it continued to push higher during the Asian sessions. As predicted yesterday, after breaking above 4200, things will become much more exciting. SP 500 rose 5.2% in April. So far, It is up 0.5% in May. The number could get better tomorrow.
- On the upside, 4230 is the immediate resistance zone. After 4230, sky is the limit.
- On the downside, 4200 is the first support area, followed by 4164 / 4176.
Below is the daily Renko chart
How to Use Renko Chart Technical Analysis and Forecast in Trading – Support, Resistance, and Trendline
I like to use Renko chart for technical analysis and forecast because of its simplicity and clarity. Unlike the bar or candlestick charts, a new brick does not get created based on the time intervals. A new brick is formed when the price movement closes above or below the set brick size. Since it is solely based on the price movement, there are fewer bricks on the chart. A trend, support, or resistance is easier to be identified.
In today’s Renko chart, the SP 500 Futures created no new bricks on the chart. Once again, the last brick was 4182 – 4188. Nonetheless, we can see 3 new ‘dark green’ bricks on the far right of the chart because the Futures continued to move higher after the U.S. close. At time of writing, the last dark green brick was 4206 – 4212. It appears 4200 has become the new support. Of course, 4164 / 4176 is the strong support zone. Tomorrow, there is a good chance the old record close 4225 will be taken out. If that does happen, sky will be the limit.