Technical Analysis and Forecast
The SP 500 FUTURES fell below 4200 on Thursday; however, it was still confined in a very tight trading range between 4160 and 4200. Tomorrow, we’ll get the May job numbers. Things may get interesting. Based on the Renko chart technical analysis and forecast, things have not changed much since last Thursday, 5/27/2021.
- The Renko chart uses a traditional 6-point brick size.
- On the upside, 4200 / 4230 is the immediate resistance zone.
- Once the SP 500 Futures closes above 4225, sky is the limit.
- On the downside, the strong support zone is near the 4164 / 4176 area, followed by 4110 / 4128.
The SP 500 Futures failed to stay above 4200. However, the trading range is still confined in the two major support / resistance levels, 40 points apart – 4200 / 4160.
- On the upside, 4200 / 4230 is the resistance zone. After 4230, sky is the limit.
- On the downside, 4164 / 4176 is the first support area, followed by 4128.
Below is the daily Renko chart
How to Use Renko Chart Technical Analysis and Forecast in Trading – Support, Resistance, and Trendline
In today’s daily Renko chart above, the SP 500 Futures spent much of the day below 4200. It found support near the 4164 area and then rebounded. The big picture remained the same. Either when it can close above the record close on the Renko chart, 4224, or it falls below 4164, things will get more exciting and the direction will become clear. Before that happens, there is not much happening at the moment.
In today’s hourly Renko chart below, it looks like SP 500 Futures has built a Head and Shoulders pattern. The neckline sits at 4194. Today, it fell below 4194 and found support near the major support area, 4176 / 4164. It then rebounded and retested the neckline, 4194, and 4200. Currently, it is trading below 4194. This could be signaling more decline to be expected. The wildcard is the Nonfarm Payroll tomorrow. The market could experience wild swings after the job numbers.
In the 5-minute Renko chart below, 4200 currently is the resistance. There is some minor resistance near 4212. 4230 is the record close. In contrast to the hourly chart, the 5-minute chart looks more bullish at the moment. If the SP 500 FUTURES can overcome these resistance levels, more record highs are anticipated. On the downside, there are 4164 and 4152, which should provide ample support.