Overview

Technical Analysis and Forecast

The SP 500 FUTURES stayed above 4200 on Friday and traded in a very tight range. Based on the Renko chart technical analysis and forecast, things have not changed much since Thursday, 5/27/2021.

• The Renko chart uses a traditional 6-point brick size.
• On the upside, 4224 / 4230 is the immediate resistance zone.
• Once the SP 500 Futures closes above 4225, sky is the limit.
• On the downside, 4200 is the immediate support, followed by the strong support zone, 4164 / 4176.

What Happened

The SP 500 Futures appears to stay above 4200 comfortably. It reached 4217 during the overnight sessions, and then traded sideways. SP 500 rose 5.2% in April. It is up 0.7% in May.

What’s Next

• On the upside, 4230 is the immediate resistance zone. After 4230, sky is the limit.
• On the downside, 4200 is the first support area, followed by 4164 / 4176.

Below is the daily Renko chart

How to Use Renko Chart Technical Analysis and Forecast in Trading – Support, Resistance, and Trendline

The key element of a Renko chart is the price movement regardless of time. A Renko chart would create bars only when price moves up or down beyond a preset amount. I like to use it because it effectively filters noise out of the chart, and makes it easy to identify the key support and resistance levels and the formation of trends.

In today’s Renko chart, the SP 500 Futures created 2 new bricks on the chart. I use the traditional brick size of 6. The last brick was 4182 – 4188. Today, it closed at 4202; therefore; 2 new bricks were formed. They were one from 4188 to 4194, and the other one from 4194 to 4200. The future outlook has not changed very much since the beginning of the week. It appears 4200 has become the new support. Of course, 4164 / 4176 is the strong support zone. The record close on the Renko chart is 4224. If it could close above that level, sky will be the limit.