Overview
In today’s post, we’ll cover the SP 500 Renko charts technical analysis, the SP 500 forecast today and important support and resistant levels.
SP 500 Renko Charts Technical Analysis and Forecast Today
As a consequence of the COVID debacle, $SPX was able to regain its footing at the 4,500 level and stage a remarkable comeback. It soared over 200 points and moved close to the all-time high before reversing course and giving back part of the gains. On the basis of today’s SP 500 trading patterns and prognosis on the Renko chart, it looks like the $SPX may be headed down into the 4,650 area and re-testing the strength of the support there. In light of the recent strong bullish momentum, if the support at the 4,650 zone holds, the $SPX is expected to target the all-time high of 4,718 in the next few days.
Writing Covered Calls
When the market is unable to find a direction, covered call writing may be quite beneficial. It is an excellent approach for providing downside protection for stocks that you already own in your investment portfolio. By continuously writing covered calls, you may decrease the cost basis of your investment, increasing your chances of making a profit. Writing out-of-the-money calls is a profitable trading method to employ if you have faith and confidence in the underlying stock in which you are investing. It is possible to profit by selling calls that are at or near the strike price if you are not confident in the stock’s future performance.
It is also important to remember that the degree of protection offered by in-the-money calls is substantially larger than the level of protection provided by out-of-the-money calls, which is especially true in a downtrending market.
- The traditional 6-point brick size is used in the Renko chart.
- On the upside, the 4,700 region serves as an immediate resistance level, followed by 4,718.
- On the downside, 4,650 is the first level of support, followed by 4,600, and subsequently 4,572.
SP 500 Forecast and Charts
A number of different algorithms are used to carry out the calculations. In addition to historical S&P 500 values over the previous five years, this forecast takes into account other variables such as stock market indices and economic data to arrive at its forecast.
December 9, 2021
By factoring in today’s closing price of the $SPX, which was 4,667, into the forecast model, the prognosis stays comparable to the forecasts provided by the following models. The trend continues to be upward. However, one thing that continues to stand out is the halt near the 5,000 mark in the index. It will be interesting to observe how things develop over the next few months.
December 1, 2021
The forecast for today is based on the closing price of the SP 500 for November, which was 4,567. As can be seen on the chart, it continued to show signs of a sharp upward move in December before beginning to stall near the 5,000 level.
Month Forecast Dec-21 4,902 Jan-22 4,941 Feb-22 5,009 Mar-22 5,009 Apr-22 5,318 May-22 5,356 Jun-22 5,453 Jul-22 5,569 Aug-22 5,697 Sep-22 5,429 Oct-22 5,601 Nov-22 5,690
November 15, 2021
The first S&P 500 forecast was completed in early November, immediately following the previous month’s close. It is anticipated that the $SPX will continue its upward trend in the foreseeable future, according to the forecast model depicted below. However, it appears that there is only a limited amount of room for upward movement left, and that the trend will begin to plateau in the coming months. It represented an upward movement that was followed by a retracement.
At that point in time, we have no way of knowing when the retracement will take place or how severe the ramifications will be. However, the fact remains that it is sending a message to investors, advising them to proceed with caution in the meantime.
Month Forecast Nov-21 4,775 Dec-21 4,838 Jan-22 4,812 Feb-22 4,762 Mar-22 4,677 Apr-22 4,892 May-22 4,851 Jun-22 4,896 Jul-22 4,987 Aug-22 5,116 Sep-22 4,912 Oct-22 5,080
Renko Charts Technical Analysis
Daily Renko Chart
The $SPX is quite near to the psychological barrier level of 4,700 in the short term. It has retraced a little today after making a significant rebound over the prior several days. In addition, the 4,700 zone has proven to be a difficult area to break through recently. $SPX is expected to consolidate and gain some support at the 4,650 level before attempting to breach the 4,700 level once more. If the support level of 4,650 is not strong enough to sustain the retracement, the index is likely to retest the levels of 4,600 or 4,572, respectively.
5-Minute Renko Chart
Looking at the pattern on the 5-minute chart, it can be seen that the $SPX found support at 4,500 and has since recovered from that level of support. It broke through the falling trendline that began at 4,740 and proceeded to move upward from that point. The question now is whether the retracement will come to a halt at this level or whether it will continue its downward trajectory until the 4,600 level. On the upside, 4,700 continues to act as a major hurdle, followed by 4,710, 4,728 and, eventually, the all-time high of 4,744.
Renko Charts Technical Analysis: More Resources
- How Do Renko Charts Work? A Trader’s Guide
- How to Use Renko Charts for Stock Trading?
- Renko Chart Buy Sell Signals – a How-to Guide
- What Is a Renko Chart and How I Use It in Trading
- Buy-Write Covered Calls Strategy Should Generate More Income
- What Is a W Double Bottom Pattern and How to Profit from It?