SP 500 Renko Chart Trading and Technical Analysis 7/26/21

Overview

Renko Chart Trading

The SP 500 FUTURES has been trading upward since last Tuesday, 7/20/21, after reaching a low of 4,224. After the price stopped at around 4,380, the downward trend intensified. On Wednesday, 7/14/2021, the zone between 4,350 and 4,384 appeared to be troublesome on the 1-hour and 5-minute Renko charts. This correction looked to be quick and violent in its severity. It dropped 160 points in three days. However, we are back at an all-time high today. The Renko chart trading pattern clearly suggested a strong V-shape rebound.

Renko chart trading patterns and technical analysis for the SP 500 show that the bullish trend is expected to continue amid another strong V-shape rebound. However, the current short-term bullish trend may be winding down because it has risen over 200 points in only five days. We’re not sure if 4,416 was the top that formed. One thing to keep in mind is that entering a fresh long position at this stage should be approached with considerable caution. At this time, writing covered calls on the stocks you hold to provide downside protection may be a viable alternative.

  • The traditional 6-point brick size is used in the Renko chart.
  • On the upside, no resistance is in sight.
  • On the downside, 4,374 is the first line of defense, followed by 4,344. The 4,314 level is significant since the bullish trend line is now close to the 4,280 region.

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

As shown in the daily Renko chart below, the SP 500 Futures struck a low of 4,254 and then began to rebound. It has risen over 200 points in only five days and is already at an all-time high. There is clearly no obvious resistance in sight. The bulls unquestionably have the upper hand. Furthermore, there is no evidence of a top forming, and the bullish trend continues. The ascending trendline is also approaching the 4,280 level. However, given last week’s sharp rise, investors should proceed with caution. A short-term correction is anticipated, but no signs of a trend reversal have emerged.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/26/21 daily chart

We are now at an all-time high in terms of trade activity. The present bullish trend looks to be quite powerful. This recovery has gained about 200 points in a relatively short period of time, as indicated in the hourly chart below. In the short term, the price may oscillate between 4,380 and 4,420 before pushing higher. If 4,386 does not hold, the price will fall to near 4,340.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/26/21 hourly chart

The 5-minute Renko chart shows a similar image to the hourly chart. From 4,230, we can see a very strong V-shape recovery. It did not stop even when it approached the resistance zone between 4,344 and 4,380. It pierced the area and hit 4,400 before reverting to 4,380 to retest the support. The bullish trend looks to be sustaining itself.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/26/21 5-minute chart

Renko Chart Trading: More Resources

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