SP 500 Renko Chart Trading and Technical Analysis 9/30/21

Overview

Renko Chart Trading

The S&P 500 $SPX had another chance to retest the 4,380 resistance level today, but it failed. It was unable to rise beyond 4,380 and finished the day in the red. According to Renko chart trading patterns and technical analysis, the ascending trendline running from 3270 to 3774 has been broken. For the Bulls, this is bad news. As a result, initiating a new long position at this time would be unwise. The market must first establish a bottom before it can climb higher. It’s still uncertain if the decline has reached a nadir.

The bulls have a difficult challenge ahead of them now that the long-term rising trend has been broken. In the foreseeable future, breaking beyond the 4,380 barrier will be significantly more difficult. A short-term bottom has yet to be created, despite the fact that the long-term rising trendline has been broken. For the bulls, things aren’t looking good. $SPX has certainly entered the correction phase in this scenario. It’s hard to say how much lower the market can go.

Because there are so many unknown variables right now, taking a new long position should be done with caution. For the time being, writing covered calls on stocks you own to give downside protection is a viable option. In a downtrending market, on the other hand, writing covered calls could be a profitable strategy. For the time being, a conservative approach to investing is the best way to deal with the market.

  • The traditional 6-point brick size is used in the Renko chart.
  • On the upside, the 4,326 region serves as an immediate resistance level, followed by the 4,356 resistance level.
  • On the downside, 4,260 is the first level of support, followed by 4,230, and subsequently 4,200.

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

The bulls face difficulties, according to the daily Renko chart pattern and technical analysis, because $SPX has broken below an important upward trendline. As a result of the current collapse, the market’s future direction remains uncertain. To begin with, it’s uncertain whether the market has reached a near-term bottom. Second, it closed below 4,380 today, which proved to be a huge stumbling block. It’s critical to keep the price above 4,300; otherwise, it’ll almost certainly retest the previous low of 4,260, implying another 1% decline. If 4,300 gives way, the next support level is 4,260. If the bulls can regain the 4,356 and 4,380 levels, they will have a better opportunity of pushing the price higher toward 4,400.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 9/30/21 daily chart

The $SPX is clearly below the prior major support levels of 4,380 on the hourly Renko chart. The bulls’ situation has become more difficult as $SPX has broken through many important support levels and gone below the long-term rising trendline. For the time being, the spotlight will be on 4,356, which bulls must retake if the declining trend is to be reversed. If 4,300 does not hold, the fall will continue. Below 4,300, the 4,260 level is the first support area. To the upside, $SPX must reclaim the 4,380 level first, then the 4,404 area. If $SPX can close above 4,404, it will have a better chance of retesting the 4,450 to 4,480 resistance zone.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 9/30/21 hourly chart

4,356 appears to be a strong support level on the 5-minute Renko chart, but it has been broken. The market is clearly still looking for a bottom. $SPX closed barely below the next support zone, which is approximately 4,320. It’s unclear whether the 4,320 support level has been shattered. If the 4,320 level fails to hold, the price will fall below 4,300, with 4,260 being the next level of support. On the 5-minute chart, the bulls’ prospects appear bleak. On the upside, the 4,356 level must be recaptured in order to progress higher and retest the 4,380 zone.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 9/30/21 5-minute chart

Renko Chart Trading: More Resources

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