Renko Chart Trading
The $SPX has risen to new highs and is now trading at all-time highs. The all-time high is near 4,560, while the Renko daily chart all-time closing is 4,548 on Friday. Higher highs are forecast based on Renko chart trading patterns and technical analysis, as $SPX is comfortably resting in record territory. If the index retraced and recovered its momentum, it should give sufficient support between the 4,476 and 4,500 zone on the downside.
While bullish momentum is currently quite strong, we can readily see some possible near-term highs. Renko’s previous all-time high was 4,536. A 1% gain would bring the index to around 4,580. It would be approaching 4,626 if it increased by 2%. The psychological barrier of 4,600 lies between the two expected values. On the other hand, 4,500 is the initial level of support as well as psychological support. The zone around 4,476 should provide excellent support further down.
Writing Covered Calls
It’s a smart idea to write covered calls on equities you own to provide downside protection. Writing out of the money calls is a terrific strategy to use if you believe in the stock and are positive about it. If you’re not confident about the stock, writing at the money or in the money calls could be a good idea. Writing out of money calls while positive in the market could speculate the upward possibility and gain, but it could also give downside protection if the market or stock loses upside momentum and becomes directionless or continues to fluctuate up and down in a trading range.
- The traditional 6-point brick size is used in the Renko chart.
- On the upside, the 4,600 region serves as an immediate psychological 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
According to the daily Renko chart pattern and technical analysis, the $SPX is trading in record territory, with strong bullish momentum and a positive outlook. The next upside goal for $SPX is located between the 1% gain near 4,580 and the psychological level of 4,600. The index should rise to 4,620 points with a 2% increase. On the other hand, 4,500 is the initial degree of support, followed by the area around 4,476.
Daily Renko Chart
The $SPX is currently at an all-time high. Because there is no obvious barrier to the upside, more new highs are likely. The psychological barrier of 4,600 would most likely be the initial objective for $SPX. Furthermore, since the 4,340 area, the $SPX has increased more than 200 points. A retreat is an option, but it isn’t required. If there is a pullback, the 4,500 level provides the first level of both technical and psychological support, followed by the 4,476 area.
Hourly Renko Chart
The $SPX is currently at an all-time high on the 5-minute Renko chart. Because there is no evident barrier to the upside, more new highs as well as a retreat are likely. We can divide the 5-minute chart into three trading zones. Above the 4,548 area is the first zone. The psychological barrier of 4,600 would most likely be $SPX’s first target. Furthermore, the $SPX has risen more than 200 points since the 4,340 area. A retreat is likely. Between 4,500 and 4,540 is the second trading range. The 4,500 level is the first level of both technical and psychological support if there is a downturn. Between 4,440 and 4,480 is the third trading area.