Renko Chart Trading
The SP 500 FUTURES has not moved much since the July job report last Friday, although it has quietly creeped upward. The recent low of 4,380 remained as the first line of defense if the index reversed direction. The daily Renko chart trading pattern continues to show a positive trend that has finally reached a stall. Because it is in record territory, additional highs are likely. It’s a little perplexing why futures is only slightly higher than the prior peak. It would be nice to see a clear break from the present trading range, which would be fantastic news for the bulls.
According to Renko chart trading patterns and technical analysis, the SP 500’s bullish trend is still intact. The rising trendline is getting close to the 4,310 level. On the upside, there is no discernible barrier. These are encouraging signs for the bulls. More highs are highly possible as long as the bullish momentum stays strong. On the downside, the initial support level is at 4,380, followed by 4,344.
- The traditional 6-point brick size is used in the Renko chart.
- On the upside, there is no obvious resistance in sight.
- On the down side, 4,380 is the first line of defense, followed by 4,344.
How to Apply Renko Chart Trading Patterns and Technical Analysis in Trading – Support, Resistance, and Trendline
I had hoped that the job data last Friday would drive the futures out of its trading range in some way, but that did not happen. As a result, futures prices rose. Although it is in record territory, it is still fairly limited in its range. The bulls’ bullish momentum stays strong as long as the futures holds above 4,380. As long as it is above 4,310, the bullish trend will continue.
Daily Renko Chart
We can plainly observe two trading ranges on the hourly chart. The first is the yellow area bounded by 4,374 and 4,416. The green area between 4,344 and 4,380 is the second. The index appears to have broken out of its top trading range, which is excellent news for bulls. However, it would be preferable if the price could continue to rise and firmly establish itself above the 4,416 mark. Despite the fact that additional highs are quite possible, the index might revert and retest the support levels. The initial level of support is approximately 4,374 and is followed by the 4,344 level.
Hourly Renko Chart
The 5-minute chart also displays two major trading ranges. The yellow range extends from 4,368 to 4,416. The lower end of the range is between 4,344 and 4,380. The index is now slightly above its top trading range, but just marginally. More highs are ideally anticipated. However, the futures might reverse course and return to the trading range of 4,368 to 4,416. The consolidation trend will resume in that scenario.