Overview
SP 500 Forecast Today and Renko Chart Trading
Despite the fact that the all-time high was still at 4,718 on the Renko daily chart, the all-time closing price on the Renko daily chart remains at 4,704. On Friday, the $SPX, unable to reach new highs due to the COVID scare, took a sharp turn downward. Today’s SP 500 forecast and trading patterns on the Renko chart indicate that the psychological threshold of 4,700 continues to act as a significant impediment to further progress for $SPX. Because of the waning of the bullish momentum, the index is currently in search of a reliable support level. Having dropped below the 4,650 support line, the next level of support will not be reached until the price reaches 4,572. If the decline continues, the $SPX may retest the 4,536 level of support.
The stock market index, $SPX, hovered around the 4,700 mark throughout the week. It was unable to surpass the previous record high of 4,718. On Friday, the stock took a sharp turn and plunged. There is still a good chance that the $SPX will rally in the near future and retest the 4,718 level. Support is most likely to be found near the level of 4,572 in the short term. Even if the $SPX is unable to halt its decline at the previous level of 4,572, it should be able to find another support level near 4,536.
Writing Covered Calls
It is a great strategy to write covered calls on stocks that you already own in order to provide downside protection for your investment portfolio while also increasing profit. When compared to other investment strategies, covered call writing allows you to earn more money, increase your level of safety, and increase your chances of making a profit. If you have faith in and confidence in the underlying stock, writing out-of-the-money calls is a great strategy to employ in your trading. Alternatives include selling calls at or in the money if you are not confident in the stock’s performance. Particularly in a downtrending market, the level of protection provided by in-the-money calls is significantly greater than that provided by out-of-the-money calls.
- The traditional 6-point brick size is used in the Renko chart.
- On the upside, the 4,650 region serves as an immediate resistance level.
- On the downside, 4,572 is the first level of support, followed by 4,536, and subsequently 4,476.
SP 500 Forecast Today
The calculation is carried out using a variety of algorithms. In addition to historical S&P 500 values over the previous five years, this forecast takes into consideration other variables such as stock market indices and economic data.
The first $SPX forecast was completed in early November, following the close of the previous month. According to the forecast model depicted below, the $SPX has room to continue its upward trend in the foreseeable future. However, it appears that the amount of room available for upward movement is limited, and that the trend is beginning to plateau in coming months. It represented an upward movement that was followed by a retracement. We have no way of knowing when the retracement will take place or how severe the ramifications will be at this point. In any case, the fact remains that it is sending a message to investors to proceed with caution.
The second $SPX forecast was completed today, with the assumption that Friday would be the final trading day of November. According to the forecast model depicted below, the $SPX will resume its upward trend sharply before coming to a halt near the 5,000 level. It appears to indicate that the stock market’s decline on Friday was a correction rather than a reversal. It remains to be seen whether or not the forecast is correct. The forecast model is based on numerical and statistical information. It is unable to anticipate the unexpected influences that may occur. Again, exercise caution during these trying times.
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
SP 500 Forecast Today Chart
Daily Renko Chart Trading
For a long time, the $SPX had been closing in on its all-time high, according to the daily Renko chart pattern, before it took a dive on Friday and reversed course. There are four major trading zones that can be identified. The first zone is located above the level of 4,700, which appears to be out of reach for the time being. The second trading range is between 4,700 and 4,650. The $SPX is currently trading within the third trading range. It is between 4,650 and 4,572. If the $SPX falls below 4,572, it will look for support near the 4,536 level.
Daily Renko Chart
When looking at the 5-minute chart, there are four distinct trading zones that are easily distinguished from one another. The first zone is located above the level of 4,662. The second trading range is between 4,662 and 4,632. There is a third trading range that spans from 4,632 to 4,596. By one point, the $SPX closed below the lower boundary. However, it is still fair to argue that the $SPX is currently trading within this trading range. Below 4,596, the next level of support is near 4,554. If the $SPX can recover from its recent low of 4,596, it will be able to retest the 4,632 resistance level, which does not appear to be too challenging.
On the other hand, the range between 4,662 and 4,668 may prove more difficult to overcome. On the down side, it appears to be extremely vulnerable. If the support level of 4,554 is breached, the next support level will not be seen until $SPX reaches 4,450.
5-Minute Renko Chart
Renko Chart Trading: 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?