SP 500 Renko Chart Trading and Technical Analysis 8/19/21

Overview

Renko Chart Trading

Since Monday, August 17, 2021, the SP 500 FUTURES has been on the decline. Since the index changed direction, the latest high of 4,476 has remained the highest point. The daily Renko chart trading pattern continues to reflect a positive trend that has now reached a halt and entered a new corrective phase. It fell to a low of 4,347 today before recovering 53 points. The comeback was spectacular. Futures are highly likely to revisit some of the resistance levels in the 4,400s as a result of this robust bounce. Despite this, the futures market has started a short-term corrective phase. Unless there is another significant V-shape recovery, the price is likely to remain trapped between 4,344 and 4,476.

The SP 500’s bullish trend is still intact, according to Renko chart trading patterns and technical analysis. The ascending trendline is approaching the 4,344 level. In fact, the futures has recovered near the ascending trendline of 4,347 today. We did not notice this rebound on the Renko chart, however, because Renko is based solely on closing prices. In fact, 4,344 is noteworthy since it represents both a horizontal support level and a rising trendline support level on the chart. It is not good news for the bulls if 4,344 is breached.

On the up side, there is a slew of opposition in the cards. The major obstacle for the bulls would be 4,476. On the downside, the first level of support is at 4,380, followed by 4,344 and 4,314. Given today’s mid-day reversal, the bulls have a decent chance of maintaining the upward trend momentum.

  • The traditional 6-point brick size is used in the Renko chart.
  • On the upside, the major barrier is 4,476.
  • On the down side, 4,380 is the first line of defense, followed by 4,344 and 4,314.

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

The strong July job data released last Friday pushed futures up by 1%, extending the upward trend by another week. However, the sluggish bull run came to an end on Tuesday. It changed course and proceeded to trade downward. From Monday’s high of 4,476, to today’s low of 4,347, the market fell 3%, or 129 points, in three days. It did, however, recover 53 points from the trough and closed at 4,400. That’s really remarkable. It remains to be seen whether the SP 500 Futures has formed a top. The upward trend continued. The price’s strong comeback today may inspire bulls to push it higher. Nonetheless, prices may remain trapped between 4,344 and 4,476 for some time as the pullback begins.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 8/19/21 daily chart

The price has clearly gone below 4,416, and it is trading in the bottom portion of the range between 4,374 and 4,416. It did reach 4,347 today, but it was able to recoup its losses and close at 4,400. However, it would be better if the price could continue to rise and establish itself solidly above the 4,416 level in order to test the recent high once more. Despite the possibility of further highs, prices are stuck between 4,344 and 4,476 and may retest the support levels in the 4,300 range. The first level of support is about 4,374 and is followed by the level of support of 4,344. Above 4,416, bulls must break out of the yellow zone between 4,440 and 4,476.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 8/19/21 hourly chart

The price is now trading between 4,368 and 4,416 on the 5-minute chart. If the bulls can keep pushing prices higher and solidly above 4,416, they will be able to revisit the 4,476 high. Only then may additional highs be expected. Otherwise, the futures are trapped in a corrective pattern and may retest the 4,344 support level once again. If 4,344 fails, the next level of support is at 4,300.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 8/19/21 5-minute chart

Renko Chart Trading: More Resources

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