Renko Chart Trading
Today, I’m switching to $SPX. The SP 500 $SPX had a good start today, but it couldn’t hold on to its gains. The day ended up being a flop. The ascending trendline extending from 3270 to 3774 has been broken, according to Renko chart trading patterns and technical analysis. The bullish trend appears to be collapsing. This is bad news for the bulls. In addition, we are nearing the 4,356 support level. If 4,356 fails, the next level of support is near 4,326. It will be the sub 4,300 levels below that level.
The bulls face a difficult task ahead of them. The bulls are currently up against the 4,380 resistance region on the upside. Above 4,380, the barrier level of 4,404 gets considerably more difficult to overcome. A short-term bottom has yet to be discovered, despite the fact that the long-term rising trendline has been broken. $SPX has entered the correction phase in this situation. It remains to be seen how much lower the market may fall.
Taking up a new long position at this point should be done with caution. For the time being, writing covered calls on stocks you own to give downside protection is a viable option. In a downtrending market, writing covered calls could be a profitable move. A conservative approach to investing is an excellent way to handle the market right now.
- The traditional 6-point brick size is used in the Renko chart.
- The 4,380 region serves as an immediate resistance level on the upside, followed by the 4,404 major resistance level.
- 4,326 is the initial level of support on the downside, followed by 4,260.
How to Apply Renko Chart Trading Patterns and Technical Analysis in Trading – Support, Resistance, and Trendline
Despite the price having broken below the key upward trendline, the bulls have hurdles ahead, according to the daily Renko chart pattern and technical analysis. As a result of the recent drop, the current bullish impetus has been muted or diminished. It’s critical to stay above 4,326; otherwise, the next support won’t come until the 4,260 area. Because the short-term bottom has not yet been established, catching a falling knife is exceedingly dangerous. The 4,380 region, on the other hand, has to be regained on the upside. Today, the market attempted but failed to do so. It remains to be seen whether 4,380 will be retested again.
Daily Renko Chart
$SPX is definitely below the prior significant support levels of 4,380 and 4,404 on the hourly Renko chart. The bulls’ position has become more difficult as $SPX has broken through numerous significant support levels and gone below the long-term rising trendline. For the time being, the focus will be on 4,326, which should help to slow the decline. If 4,326 gives way on the hourly chart, the following support, which is located below 4,300, is not clearly visible on the chart.
Hourly Renko Chart
4,356 appears to be a strong support level on the 5-minute Renko chart. It remains to be seen whether 4,356 can halt the downturn. If the 4,356 level gives way, the next support zone is around 4,320 to 4,340. If the 4,320 level fails to arrest the loss, it will fall below 4,300, which is not visible on the 5-minute chart as a support level. On the 5-minute chart, the bulls’ prospects appear bleak. On the up side, there are a few stumbling hurdles. The area between 4,380 and 4,392 will be the first. The bulls must retake 4,380 in order to push $SPX back above 4,400 and reestablish bullish momentum.