SP 500 Renko Chart Trading and Technical Analysis 11/5/21

Overview

Renko Chart Trading

The $SPX spiked to new highs before backtracking and finishing just below 4,700. The all-time high was reached during today’s session before the market retraced little, and it is currently around 4,718. On the Renko daily chart, the all-time close is 4,692. Higher highs are forecast based on Renko chart trading patterns and technical analysis because the $SPX is comfortably sitting in record territory and the bullish momentum is strong. In fact, $SPX has risen by more than 100 points in the last week. However, due to the size of the recent rise, $SPX may retrace from the all-time high, resulting in some profit taking.

On the downside, if the index retraced and then recovered its positive momentum, it may find sufficient support between the 4,572 and 4,536 zones.

While bullish momentum is currently quite strong, the Renko chart can be used to plot potential near-term highs. Renko’s previous all-time high was 4,536. An increase of 1% would bring the index to around 4,580 points. The $SPX closed at 4,574 on October 26. It would be approaching 4,626 if it increased by 2%. $SPX closed at 4,630 on 11/2. $SPX would be at 4,717 after a 4% rise from 4,536. During Friday’s trading session, the $SPX rose to 4,718 before retracing a tad and closing just below 4,700. The next aim is 4,762, which represents a 5% increase. However, based on chart patterns alone, $SPX is likely to retrace and consolidate before pushing to 4,762 owing to profit taking.

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Writing covered calls on stocks you own is an excellent way to provide downside protection. Covered call writing can provide you with additional income, safety, and a larger chance of profit. Writing out of the money calls is a terrific strategy to use if you believe in the stock and are confident in it. If you’re not confident about the stock, writing at the money or in the money calls can be a good idea.

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  • The traditional 6-point brick size is used in the Renko chart.
  • On the upside, the 4,700 region serves as an immediate psychological resistance level.
  • On the downside, 4,572 is the first level of support, followed by 4,536, and subsequently 4,500.

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 upward goal for the $SPX could be around the 4,762 level. This is based on the previous high of 4,536. $SPX will be at 4,762 after a 5% rise from 4,536. The major concern at the present is that the $SPX has risen more than 150 points with no visible or apparent pullback. The desire to take short-term profits has intensified. Due to profit-taking pressure, $SPX is likely to retrace and consolidate for a little time before resuming its rising trend.

Daily Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 11/5/21 daily chart

Because there is no visible barrier to the upside except the most recent intraday record high near 4,718, the $SPX is nearing an all-time high, and fresh highs are quite possible. The psychological barrier of 4,700 would most likely be $SPX’s first hurdle, as it closed just barely below it. Furthermore, since the 4,536 area, the $SPX has risen more than 150 points. Taking a break is possible. If a pullback happens, the initial level of technical support is provided by the 4,572 level, followed by the 4,536 level.

Hourly Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 11/5/21 hourly chart

On the 5-minute Renko chart, there is no obvious barrier to the upward trend except for the recent high of 4,716, so more new highs as well as a retreat are likely. Three trade zones can be identified on the 5-minute chart. Above the 4,668 area, the first zone is placed. The $SPX’s initial obstacle would most likely be the psychological barrier of 4,700. There is no visible barrier over 4,716. Between 4,596 and 4,668 is the second trading range. If the $SPX falls below 4,668 in a downturn, the 4,600 level is the first level of technical and psychological support. Between 4,554 and 4,596 is the third trade zone. This would only happen in the event of a serious decline.

5-Minute Renko Chart

SP 500 Renko Chart Trading and Technical Analysis 11/5/21 5-minute chart

Renko Chart Trading: More Resources

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