Overview

Renko Chart Trading

Today, the SP 500 FUTURES reached a new all-time high of 4,364. It plummeted sharply yesterday, as though a top had formed and the trend had reversed. However, this was not the case. It fell to a low of 4,279 and then began to rebound. On Wednesday, we identified the 4,280 support zone on the 5-minute Renko chart because it was not visible on the daily or hourly chart. The SP 500’s Renko chart trading patterns and technical analysis indicate that the rising trend will continue. Furthermore, the longer-term bullish trend line has slowly risen to 4,210. Yesterday’s drop drew in additional buyers looking for a good bargain on shares. As we can see today, the price was elevated and closed at all-time highs.

• The Renko chart uses the traditional 6-point brick size.
• On the upside, there are no obvious big roadblocks.
• On the downside, the 4,280 level may offer support for the bulls, followed by the previous high of 4,242 and, ultimately, the 4,200 support zone.

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

As indicated in the daily Renko chart below, the SP 500 Futures is once again in record territory today. In fact, the steep drop yesterday brought more buyers back into the market, leading the price to surge. We can clearly see that yesterday’s closing of 4314 represents the bulls’ first line of defense. If the rising trend momentum diminishes, the price may fall further in the range of 4,242 to 4,314 in order to find support and maintain the positive trend. At this point, we believe the price will continue to climb. However, because of the extremely expensive price, extreme caution should be exercised. Any abrupt shift in sentiment might cause the price to collapse fast and dramatically.

Daily Renko Chart

The SP 500 futures has entered a new trading range, as shown on the Renko hourly chart below. We anticipate that the upward momentum will continue, pushing the price higher. The immediate support region would be the trading range between 4,290 and 4,350. There is no obvious support between 4,254 and 4,290. If the bullish impetus fades, the futures will most likely return to this area and retest the support levels.

Hourly Renko Chart

On the 5-minute chart, we can clearly see that the trend was smooth sailing, beginning at 4,128 and continuing all the way to 4,280. Buyers and sellers are battling between 4,284 and 4,350. Buyers appeared to have the upper hand at the time. We expect a similar trading pattern to continue as the price rises and trades in record territory.

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
• What Is a W Double Bottom Pattern and How to Profit from It?