Overview

Technical Analysis and Forecast

The SP 500 FUTURES found support at 4,190. It then recovered and reached a high of 4230. The price then fell again, retested the 4,190 level, and rebounded from there. It moved in a zigzag pattern. The technical analysis and forecasts of the Renko chart continue to indicate that things are mixed in the short term. The bullish trend line, on the other hand, stays firm.

• The usual 6-point brick size is used in the Renko chart.
• The apparent upside hurdle on the Renko chart is the all-time high closing price of 4,254. However, 4,224 looks to be a bit tricky.
• On the downside, a number of support levels may be useful in keeping the SP 500 FUTURES positive momentum going. They are 4200, 4176, and 4164 in that order.

What Happened

There was no big news to affect the market today. We did have weekly unemployment claims, which increased to their highest level in a month, but the market opted to disregard the numbers. The trading range remained narrow, ranging between 4,190 and 4,230. It was well contained within the major areas of support and resistance. Today, neither the bulls nor the bears wanted to make a move.

What’s Next

• The record close of 4,254 is the immediate resistance level on the upside. The futures market may need to re-establish itself above 4,224.
• On the downside, 4,200, 4,176, and 4,164 should give excellent support for the continuation of the upward trend.

Daily Renko Chart

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

The record close of 4,254 is the immediate resistance level on the upside, as seen in the daily chart above. The futures market may need to re-establish its footing above 4,224, since each time the price approaches this level, it declines. On the downside, 4,200, 4,176, and 4,164 should give excellent support for the continuation of the upward trend.

The 4,224 resistance level appears to be more apparent on the hourly chart below. A strong finish above 4,224 is required to keep the positive momentum going in order for the bulls to drive the price higher. However, as indicated by the yellow area on the chart, the upward path may be considered difficult. On the downside, as indicated by the light green region, there is sufficient support to keep the price from dropping any lower.

Hourly Renko Chart

We can see a possible W, double bottom pattern developing in the 5-minute chart below, which is indicated in purple. The only thing missing is confirmation, because the closing price, 4,230, is exactly at the neck line. To guarantee that the formation is complete, the closing price must be above the neck line. Furthermore, the yellow zone above 4230 may be difficult for the bulls to conquer. As seen by the green region, there is a lot of support below 4,200.

5-Minute Renko Chart