Renko Chart Trading
Today, the SP 500 FUTURES retreated somewhat. The all-time high is still 4,549. It hit a high of 4,548 during the day before reversing. The SP 500’s bullish trend is still very much intact, according to Renko chart trading patterns and technical analysis. The ascending trendline is approaching the 4,390 level, which has been unchanged since last Friday. As previously said on Friday, 4,518 is the support of the W, which has formed a double bottom on the hourly and 5-minute Renko charts. If the futures breaks below 4,518, it will most likely retest the prior high of 4,494. If 4,494 fails to halt the drop, it will very certainly retest 4,470.
On the up side, the previous Friday’s high of 4,549 is now a resistance level. Higher highs are only probable if the bulls can break over the 4,549 resistance mark. On the down side, there is a lot of support along the way. The previous high of 4,470 serves as the first level of support, with 4,410 and 4,374 immediately following.
Investors should be aware that taking on a new long position at this time should be approached with prudence. Writing covered calls on equities you own to provide downside protection is a feasible alternative for the time being.
- The traditional 6-point brick size is used in the Renko chart.
- On the upside, the latest record high of 4,549 acts as a little roadblock.
- On the downside, the previous high of 4,470 is the first line of support, followed by 4,410 and then 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 continuing upward. The present upswing is expected to continue if the price breaks over 4,549. As the ascending trendline approaches 4,390, a break below it will very certainly break the rising trendline, shifting the major trend to the downside. On the other side, the first important defense is 4,470. The upward trend will not be threatened if the futures retest this level and rebound from it.
Daily Renko Chart
On the hourly and 5-minute Renko charts, the futures closed around the support line, 4,518, of the W, double bottom pattern. Breaking below 4,518 reduces the bullish momentum in the near term. If 4,518 can halt the drop, the bulls will have a greater opportunity of pushing the price higher. If the price falls below 4,518, all focus will be on 4,494 and 4,470, which should provide solid support to arrest the slide. The next support level is at 4,410 if the selling is intense.
Hourly Renko Chart
The 5-minute chart resembles the hourly chart in appearance. Between 4,518 and 4,536, the yellow area is significant. 4,518 is the support line in particular. The bulls must defend 4,518 in order to sustain their present bullish momentum. If the price breaks below 4,518, it will very definitely retest 4,494 or 4,470.