SP 500 Renko Chart Trading and Technical Analysis 7/30/21

Overview

Renko Chart Trading

On Friday, the SP 500 FUTURES did not reach a new all-time high. The record high of 4,422 was maintained, and the consolidation pattern persisted. It traded in a narrow range between 4,370 and 4,405 all day on Friday. The daily Renko chart trading pattern plainly indicates a continuing bullish trend, but one that is currently stagnating. In the short term, the consolidation could indicate a difficult upward rise. It might linger on until Friday, when the July Non-farm Payroll is released. Then we’ll have a better idea of where the market is going.

The bullish trend in the SP 500 continues, according to Renko chart trading patterns and technical analysis. The ascending trendline is approaching the 4,300 mark. Higher highs are likely because the bullish trend is still strong. It is currently under pressure, trading below the record high of 4,422 and the big figure of 4,400. We’ll be able to discern a clearer indication of where the market is going if it breaks above 4,422 or below 4,300. Otherwise, the consolidation trend is anticipated to continue. However, investors should be aware that initiating a new long position at this time should be done with discretion. Writing covered calls on the equities you own to give downside protection is a viable alternative right now.

  • The traditional 6-point brick size is used in the Renko chart.
  • The next upward barrier is the all-time high of 4,422.
  • On the down side, 4 374 is the first line of defense, followed by 4 344. The 4,314 mark is noteworthy since the bullish trend line is currently approaching the 4,300 zone.

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

The SP 500 Futures finished barely shy of 4,400 on Friday, after a low of 4,370 was able to stem the fall. The index is now trading in a range between 4,370 and 4,422. When the futures break out of this trading range, the direction will become obvious. The all-time high of 4,422 appears to be the obvious upward barrier. 4,370 seems to be a good short-term support level. If it is unable to stabilize the decline, the next support level is at 4,344 followed by 4,314. Furthermore, the ascending trendline is getting close to the 4,300 level. There is currently no sign of a trend reversal; nonetheless, the consolidation pattern has persisted.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/30/21 daily chart

The hourly chart continues to indicate that a consolidation is taking place. The yellow zone on the chart represents the current trading range, which is between 4,370 and 4,422. If the price falls below 4,370 or 4,380, it will fall into the next trading zone, which is between 4,350 and 4,380. If the drop continues, the next trading range is between 4,280 and 4,350. On the other hand, if buyers can maintain their bullish momentum, more record highs are possible.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/30/21 hourly chart

Like the hourly chart, the 5-minute Renko chart displays a consolidation pattern. Consolidation is now occurring between 4,370 and 4,420, as shown in the yellow region. If support at 4,370 or 4,380 fails to hold, the next level of support is at 4,350, as seen in the green region on the 5-minute and hourly charts. If it continues to decline, the next support area is at 4,280. To drive the market higher, the bulls must firmly break out of the current trading range of 4,370 to 4,422.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 7/30/21 5-minute chart

Renko Chart Trading: More Resources

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