SP 500 Renko Chart Trading and Technical Analysis 7/28/21

Overview

Renko Chart Trading

For the past few days, the SP 500 FUTURES has been consolidating below the all-time high of 4,416. We noted on Monday that the index had climbed over 200 points in five days, indicating a strong V-shape comeback. As a result, it’s quite probable that the rally will come to a halt, with the price retracing to 4,374 and retesting the support level there. At present, the daily Renko chart trading pattern clearly indicates a pullback and retest of previous support levels.

The bullish trend in the SP 500 is still intact, according to Renko chart trading patterns and technical analysis. However, because it has climbed over 200 points in only five days, the present short-term bullish trend is stagnating. The index may not have reached its peak at 4,416 and may continue to rise. Investors should be aware that starting a new long position at this point should be done with caution. Writing covered calls on the equities you own to give downside protection is a viable option right now.

  • The traditional 6-point brick size is used in the Renko chart.
  • The immediate obstacle on the upside is the 4,416 all-time high.
  • 4,374 is the first line of defense on the downside, followed by 4,344. Since the bullish trend line is currently close to the 4,280 zone, the 4,314 level is noteworthy.

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

The SP 500 Futures achieved an all-time high at 4,416 and then began to fall, as shown in the daily Renko chart below. In only five days, it has climbed over 200 points. It has retreated to the 4,380 level, where it has begun retesting previous support levels. The all-time high of 4,416 is plainly visible resistance.

After the consolidation, the bulls have definitely the upper hand in pushing the price upward. The bullish momentum is still going strong. Also nearing the 4,280 level is the rising trendline. Investors should act with caution, though, considering the significant spike seen last week. A short-term correction is now taking place, although there are no indications of a trend reversal. We don’t know how severe the current correction will be.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/28/21 daily chart

The hourly chart plainly shows that a correction is taking place. We predicted that the price would fluctuate between 4,380 and 4,420 before surging higher on Monday. The futures market is currently nearing the bottom of that trading range. If 4,386 fails to hold, the price will drop further lower, retesting previous support levels at 4,340.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/28/21 hourly chart

The 5-minute Renko chart resembles the hourly chart in appearance. The correction is now taking place between 4,380 and 4,416, but it is drifting lower. If 4,380 fails to halt the downward trend, the next level of support is 4,340, followed by 4,280.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/28/21 5-minute chart

Renko Chart Trading: More Resources

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