Renko Chart Trading
The SP 500 FUTURES had a good start today, but it couldn’t hold on to its gains. In the end, the day ended in a loss. The ascending trendline running from 3234 to 3750 is approaching the 4,395 level, according to Renko chart trading patterns and technical analysis. On the whole, the bullish trend appears to be intact. The W, which has formed a double bottom on the hourly and 5-minute Renko charts, has a support level of 4,518, as previously stated on Tuesday. The futures has closed below this level, indicating that it has been broken. It is presently retesting the range between 4,470 and 4,488 after breaking below 4,518. The next support level is near 4,410 if this region fails to stem the downturn.
The all-time high of 4,549 serves as a barrier on the upside. Only if the bulls can break through the 4,549 resistance mark will higher highs be possible. On the downside, the area between 4,470 and 4,488 provides immediate support, with 4,410 and 4,374 following closely behind.
Taking up a new long position at this time should be undertaken with caution. For the time being, writing covered calls on stocks you own to give downside protection is a viable option.
- The traditional 6-point brick size is used in the Renko chart.
- The recent record high of 4,549 serves as a barrier on the upside.
- The initial level of support on the downside is 4,470, followed by 4,410, and subsequently 4,374.
How to Apply Renko Chart Trading Patterns and Technical Analysis in Trading – Support, Resistance, and Trendline
The major trend is going upward, but the bulls face hurdles ahead, according to the daily Renko chart pattern and technical analysis. Because of the recent decline, the current bullish momentum has been suppressed. As the ascending trendline approaches 4,395, a break below it will almost probably break the rising trendline, reversing the primary trend. For the bulls, staying above 4,470 is critical right now. If it falls below it, it will take longer to re-establish bullish momentum. Furthermore, until the price approaches 4,410, a 60-point decline from 4,470, the next level of support will not be visible. This is why being able to bounce back from 4,470 is crucial.
Daily Renko Chart
The futures ended near the support line of 4,494 on the hourly Renko chart, but obviously below the W, double bottom pattern, support line of 4,518. The bulls’ predicament became more difficult when the futures broke below 4,518. Things will look up if the bulls can regain the 4,518 level. The focus right now will be on 4,494 and 4,470, which should give substantial support to stem the drop. On the hourly chart, if 4,470 gives way, the next support is near 4,440, followed by 4,416.
Hourly Renko Chart
The appearance of the 5-minute chart is similar to that of the hourly chart. The futures is currently trading at the 4,494 support line. On the upside, the W’s former support, the double bottom, is now resistance at 4,518. In order to regain bullish momentum, the bulls must recapture 4,518. If the price falls below 4,494, it is almost certain to retest 4,470. 4,440 is the next support level below it, followed by 4,410.