SP 500 Renko Chart Trading and Technical Analysis 8/27/21

Overview

Renko Chart Trading

The previous high of the SP 500 FUTURES at 4,470 proved to be the immediate support that propelled the futures higher on Friday. In addition, the Fed chairman’s Jackson Hole speech reinforced the notion that reducing bond purchases would be reasonable by the end of the year. The market rose to a new high as investors were reassured by Powell’s statements that the withdrawal of stimulus would be gradual. The SP 500’s bullish trend is still very much intact, according to Renko chart trading patterns and technical analysis. The ascending trendline is inching closer to the 4,374 level. The index is currently 100 points or more above this rising trendline, indicating that the trend remains strong.

On the up side, there isn’t much barrier in sight because the price is once again in record territory. If the price breaks over 4,510, higher highs are expected. On the down side, there is a lot of support on the horizon. The previous high of 4,470 serves as the first level of support, followed by 4,410 and 4,374. The primary issue is that there isn’t much support between 4,470 and 4,410. If 4,470 is breached, the next downward correction might be severe. The difference between 4,470 and 4,410 is 60 points, representing a 1.5 percent decline.

Investors should be mindful that opening a new long position at this time should be approached with caution. Right now, writing covered calls on the stocks you hold to provide downside protection is a practical alternative.

  • The traditional 6-point brick size is used in the Renko chart.
  • On the upside, the recent record high of 4,510 serves as a small barrier.
  • The previous high of 4,470 is the first line of support on the downside, followed by 4,410 and finally 4,374.

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

According to the daily Renko chart pattern and technical analysis, the primary trend is up. A move above 4,510 would indicate that the current uptrend will continue. As the ascending trendline approaches the 4,374 level, a move below it will break the rising trendline and likely shift the main trend to the downside.
The upward resistance is negligible. A break over 4,510 will send the price much higher. 4,470, on the other hand, is the first line of defense. If the futures retests this level and is able to rebound off of it, it will establish the desired W, double bottom pattern.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 8/27/21 daily chart

There are three primary trading zones on the hourly chart. The price is presently in record territory, 1% over the 4,470 mark. More record highs are anticipated as long as the price remains above 4,470. If the price goes below 4,470, it enters the green trading range of 4,416 to 4,470. If the price continues to fall, it will reach the yellow zone between 4,374 and 4,416. To be bullish, the price must remain above 4,374; else, the long-term view will shift and become less bullish.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 8/27/21 hourly chart

The 5-minute chart resembles the hourly chart. 4,470 is an important level since it was the previous high and is now functioning as a support level. If this level is not sustained, the green zone between 4,416 and 4,470 may be able to halt the fall. Otherwise, we’re looking at a range of 4,374 to 4,416 to bring the decline to a halt. If the price falls below 4,374, the trend will change and become less positive.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 8/27/21 5-minute chart

Renko Chart Trading: More Resources

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