SP 500 Renko Chart Trading and Technical Analysis 10/19/21

Overview

Renko Chart Trading

$SPX has pushed higher and is now within striking distance of the all-time close of 4,536. $SPX reclaimed the 4,500 region with ease after breaking through a critical barrier near 4,476. According to Renko chart trading patterns and technical analysis, higher highs are expected once the all-time high has been cleared. If the $SPX has to regain momentum before heading higher, it may return to 4,500 and retest the support level.

After leaping above the declining trendline, which is the turning moment for bulls, the $SPX burst above the crucial barrier of 4,476. The all-time high of 4,536 stands in the way right now. More highs are predicted as long as $SPX can close firmly above the 4,536 barrier. At the moment, the Bulls have the upper hand.

Writing Covered Calls

To give downside protection, it’s a good idea to write covered calls on stocks you hold. If you believe in the stock, writing out of the money calls is a great strategy to use. If you aren’t totally confident in the stock, though, writing at the money or in the money calls could be a good option.

  • The traditional 6-point brick size is used in the Renko chart.
  • On the upside, the 4,536 region serves as an immediate resistance level.
  • On the downside, 4,500 is the first level of support, followed by 4,476, and subsequently 4,422.

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

$SPX broke above the downtrend resistance line and reclaimed the 4,500 level, according to the daily Renko chart pattern and technical analysis. For the time being, the $SPX is still trading below the all-time high of 4,536, signaling that it is not totally out of the woods, but bullish momentum is strong, and the picture appears to be bright. It can easily acquire momentum at the 4,500 mark, even if it fails to close above 4,536 right away. If not, the 4,476 region is not far away from providing the necessary support.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 10/19/21 daily chart

The $SPX is currently slightly below the 4,536 barrier level on the hourly Renko chart, but it is comfortably above the declining trendline and all previous key resistance levels. If $SPX can close firmly above 4,536 soon, it will be quite promising for bulls. More fresh highs are likely if this occurs. $SPX is currently trading in a range of 4,500 to 4,476. If $SPX does not break above 4,536 immediately, it will most likely retest 4,500 or drop much lower to 4,476.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 10/19/21 hourly chart

It looks a little different on the 5-minute Renko chart than it does on the hourly and daily charts. On the 5-minute chart, the all-time high is 4,542 instead of 4,536. Nonetheless, the $SPX is on the verge of breaking through the all-time high and pushing the price even higher. The immediate support level on the downside is near 4,500. Then there’s the area of 4,482 and 4,476.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 10/19/21 5-minute chart

Renko Chart Trading: More Resources

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