Use the Renko chart technical analysis to determine the current trend, support and resistance for SP 500 FUTURES.
- The Renko chart uses a traditional 6-point brick size
- 4176 was broken by the fierce late rally in the day .
- On the upside, 4200 / 4206 is the next hurdle. Given the Dow hitting record highs 2 days in a row, SP 500 will most likely follow suit.
- On the downside, 4176 / 4164 is once again the support level.
SP 500 Futures spent very much of the day around 4176. However, buyers showed up once again in the last hour and went on a buying frenzy, which sent Dow through the roof and scored another all time high. SP 500 Futures closed just shy of 4200.
- SP 500 FUTURES might be able to set a new all time high tomorrow because of the late rally.
- 4200 / 4206 is the nearest resistance.
- On the down side, 4176 / 4164 should provide good support.
- Non-Farm Payroll on Friday
Below is the hourly Renko chart
How to Use Renko Chart Technical Analysis in Trading
A Renko chart only measures price movement. It does not have the time dimension. It is easier to see where the market is actually moving on a Renko chart. Because of its simplicity, traders are able to identify key support and resistance levels effectively and quickly. In addition, it offers a cleaner look of the market so that traders can easily identify the trend.
In today’s Renko chart above, it is very clear to see the strong uptrend. 4164 / 4176 provide the support needed for the SP 500 Futures to continue to move higher. The momentum to move up is strong. We should expect to see the SP 500 Futures trade above 4200 shortly. On the downside, 4128 provides very good support. The likelihood for the SP 500 Futures to move lower and retest 4128 is possible but slim at the moment. I expect it to move up above 4200 first.