SP 500 Renko Chart Trading and Technical Analysis 7/29/21

Overview

Renko Chart Trading

The SP 500 FUTURES reached a new all-time high of 4,422, but then fell slightly before closing. The 4,380 region proved to be a strong support zone, and the index recovered from there. The daily Renko chart trading pattern clearly suggests a continued positive trend at the moment, although the upward climb might be challenging.

According to Renko chart trading patterns and technical analysis, the SP 500’s bullish trend is still intact. The index comfortably surpassed the previous peak of 4,416 and set a new record high of 4,422. The rising trendline is getting close to the 4,290 level. Because the bullish trend is still strong, higher highs are likely. Investors should be mindful, however, that entering a new long position at this time should be done with caution. Right now, writing covered calls on the stocks you hold to provide downside protection is a viable option.

  • The traditional 6-point brick size is used in the Renko chart.
  • The nearest upward barrier is the 4,422 all-time high.
  • 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 4,290 zone.

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

After the 4,380 zone was able to halt the slide, the SP 500 Futures reversed direction and reached an all-time high of 4,422. Currently, the apparent resistance is the all-time high of 4,422. The bulls continue to have the upper hand when it comes to driving the price upward. The bullish momentum is still strong. The ascending trendline is also approaching the 4,290 level. Nonetheless, given the large gain observed last week, investors should proceed with caution. There is no evidence of a trend reversal. A correction, on the other hand, is extremely likely.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/29/21 daily chart

The hourly chart continues to suggest that there is a consolidation going on. Even though an all-time high was hit today, the price is still fluctuating between 4,380 and 4,420. The futures market is once again approaching the bottom of that trading range. If 4,386 does not hold, the price will fall much deeper, retesting prior support levels at 4,340. On the other hand, if buyers can keep the bullish momentum going, additional record highs are likely.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/29/21 hourly chart

The 5-minute Renko chart, like the hourly chart, shows a consolidation pattern. Consolidation is presently taking place between 4,380 and 4,420, although it is at the lower end of that range. If support at 4,380 fails to hold, the next level of support is 4,340, followed by 4,280. On the upside, the bulls must decisively break out of this trading zone in order to propel the price higher.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/29/21 5-minute chart

Renko Chart Trading: More Resources

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