Renko Charts and the SP 500 Forecast Right Now

Overview

Today’s post will cover the SP 500 forecast for the time being, technical analysis of SP 500 Renko charts, the covered call strategy and major support and resistance levels across several timeframes.

SP 500 Forecast and Charts

On January 1, 2022, the most recent forecast for the S & P 500 index was completed. You can find the specifics, as well as previous forecasts, on this page.

SP 500 Forecast and Renko Charts Technical Analysis

Another stunning reversal, this time at 4,584, propelled the S & P 500 to new all-time highs. On the upside, there do not appear to be any obstacles in the way. According to our projections, the index will be close to 4,900 by the end of January. Whether the SP 500 can maintain its upward trend above 4,900 and then challenge 5,000 remains to be seen.

On the downside, there is some minor support between 4,770 and 4,780. It acts as a first line of defense in the event that the market rises too much, too quickly, and then retraces in order to find support again. The second layer of support is near 4,700, followed by 4,650.

  • The traditional 6-point brick size is used in the Renko chart.
  • On the upside, the 4,900 region serves as an immediate resistance level, followed by 5,000.
  • On the downside, 4,770 is the first level of support, followed by 4,700, and subsequently 4,650.

Writing Covered Calls

In a variety of market conditions, covered call writing can be highly beneficial. It is an excellent method of protecting the equities in your portfolio from losses. Writing covered calls can help you lower the cost basis of your investment, increasing your chances of making a profit. If you have great confidence in the underlying stock, writing out-of-the-money calls can be a profitable strategy. It is possible to make money by selling calls at or near the strike price of a stock if you are uncertain about the stock’s performance in the future.

Remember that in a downtrending market, in-the-money calls offer significantly more protection than out-of-the-money calls. For further information on how to include a covered call strategy into your investment portfolio, please see this post, which goes into detail about how to use in-the-money (ITM), at-the-money (ATM), and out-of-the-money (OTM) covered calls in a variety of market environments.

Renko Charts Technical Analysis

Daily Renko Chart

Once again, a stunning reversal occurred, this time at 4,584, propelling the S & P 500 to new all-time highs. On the daily Renko chart, it does not appear as though there are any obstacles in the way of further gains. On the downside, there is some minor support between 4,770 and 4,780. Essentially, it acts as a first line of defense if the market rises excessively quickly before retracing to a more reasonable level. The second layer of support is close to 4,700, and the third layer is close to 4,650.

Renko Charts and the SP 500 Forecast Right Now 1/3/2022 daily Renko chart

5-Minute Renko Chart

The only visible barrier to the upside on the 5-minute Renko chart is the level of 4,806. The S&P 500 will almost certainly set new highs if it can close above that level. On the downside, the level of 4,770 serves as an immediate support level. If it is unable to halt the decline, the next support level will be near 4,740. Furthermore, there is a great deal of support below the level of 4,740. There is a lot of support visible in the range of 4,740 to 4,680.

Renko Charts and the SP 500 Forecast Right Now 1/3/2022 5-minute Renko chart

Renko Charts Technical Analysis: More Resources

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