Overview

Renko Chart Trading

Today, the SP 500 FUTURES reached a new all-time high of 4,348 before falling back. It was in the red for most of the day. It was most likely because the recent upward trend had become overheated and overstretched. Despite today’s drop, there is no change on the daily Renko chart because the futures managed to close at 4,334, which is within the chart’s last brick boundaries of 4,332 and 4,338. As a result, the general trend has remained unchanged. 

Technical analysis and Renko chart trading patterns for the SP 500 indicate that the rising trend will continue. Furthermore, the longer-term bullish trend line has gradually risen to 4,200. In the short term, there are small obstacles to the upside between 4,334 and 4,348. The rising trend may have reached its limit and is due for a correction. There is no clear indication of when the correction will take place.

• The Renko chart uses the traditional 6-point brick size.
• The modest hurdle on the upside is the all-time high of 4,348.
• On the downside, the 4,300 level may provide psychological support, followed by the previous high of 4,242 and, ultimately, the 4,200 support zone.

What Happened

The SP 500 FUTURES hit a fresh high of 4,348 before dropping down toward 4,300. It fell to a low of 4,305 before rising higher. The psychological support of 4,300 enticed buyers to come and purchase the dips. The recent rising trend appears to have grown overheated and overstretched. Despite today’s decline, the daily Renko chart analysis remains unchanged. The upswing is still in place, and the bulls continue to hold the upper hand.

What’s Next

• The Renko chart suggests a small resistance level at 4,348 on the upside.
• On the downside, the psychological support level of 4,300 is followed by the previous high of 4,242, and then support zones of 4,212 and 4,180.

How to Apply Renko Chart Trading Patterns and Technical Analysis in Trading – Support, Resistance, and Trendline

The SP 500 FUTURES reached a new high of 4,348 before falling toward 4,300. Despite today’s decline, the daily Renko chart analysis remains unchanged. The upswing is still in force, and the bulls continue to dominate. Buyers were attracted to come and buy the dips because of the psychological support of 4,300. There is no obvious sign that the correction has occurred on the daily chart below. It may be premature to declare that the top has formed.

Daily Renko Chart

The SP 500 futures finished 14 points lower than its all-time high. On the hourly chart below, it is still in record territory. The overall positive outlook has not changed. On the hourly chart, though, we don’t see much support between 4,254 and 4,344. If the bullish momentum fades, the SP 500 is likely to retest 4,254 or perhaps go as low as 4,180. There is no indication of when the correction will take place. The chart remains bullish.

Hourly Renko Chart

Today we observe some setbacks in the 5-minute chart below. Nonetheless, the upward trend continues to be strongly supported. More highs are likely on the way. However, if buyers are unable to drive the market higher and break over 4,348, the SP 500 futures is likely to retest 4,300 or below. The figure of 4,300 has been identified as a significant psychological and support level. The yellow zone on the 5-minute chart represents the support zone extending from 4,266 to 4,306.

5-Minute Renko Chart