Technical Analysis and Forecast
The SP 500 FUTURES opened the day at 4251 and then moved into a tight 10-point range until the FED announced its rate decision. The price dropped swiftly and sharply after the announcement. It fell to 4200 before beginning to recoup some of its losses. Based on the technical analysis and projection of the Renko chart, things appear to be mixed in the short term, despite the fact that the bullish trend remains intact.
- The Renko chart uses the standard 6-point brick size.
- On the Renko chart, the obvious upside barrier is the all-time high closing price of 4254.
- On the downside, a variety of support levels may be helpful in maintaining the SP 500 FUTURES’s bullish momentum. They are, in that sequence, 4200, 4176, and 4164.
The FED’s rate decision announcement was the day’s main event. Although the interest rate remained unchanged, the FED statement’s reference to inflation sent a shock wave across the market. Following the release of the FED announcement, all major indexes declined dramatically. The SP 500 FUTURES, as anticipated, established good support at 4,200 and rebounded nicely from there.
- The record close of 4,254 is the immediate resistance level on the upside.
- On the downside, 4,200, 4,176, and 4,164 should provide good support and help to maintain the positive trend.
Daily Renko Chart
How to Use Renko Chart Technical Analysis and Forecast in Trading – Support, Resistance, and Trendline
Despite today’s dramatic fall, the upward trend line is still evident on the daily Renko chart above. The only barrier above is the all-time high close of 4,254. It’s conceivable that the futures may retest that level soon. On the downside, 4,200 is a solid support level, followed by 4,176 and 4,164.
On Monday, I noted that the SP 500 FUTURES uptrend on the hourly chart seemed difficult. Yesterday, the SP 500 had a pullback. The FED’s rate decision was at the root of the story. Even with yesterday’s small loss, the upward trend line remains intact. We should keep a careful eye on how it evolves in the following days. The futures might try to retest the resistance region between 4,224 and 4,260 on the hour chart below. We may expect further highs on the hourly chart if it can break through the resistance levels and close above 4,260.
Hourly Renko Chart
On the 5-minute SP 500 FUTURES RENKO chart below, a potential W, double bottom, pattern is forming at the moment. We can’t be sure if it’s a double bottom. The neck line is at the 4,236 level. If the price can break above 4,236 and then close above it, we will certainly have a W, double bottom, reversal pattern. Following that, prices may continue to rise.