Overview

Technical Analysis and Forecast

During the overnight sessions, the SP 500 FUTURES were flat. It was unable to break through the resistance zone of 4,224 to 4,230. When the US market opened, it began to fall. It eventually closed at the low of the day. The Renko chart’s technical analysis and forecasts continue to show that things are mixed in the short term. The longer term bullish trend line, on the other hand, is holding steady.

• The Renko chart uses the traditional 6-point brick size.
• The Renko chart’s upper resistance is currently at 4,200. Furthermore, the region between 4,224 and 4,260 may be difficult to penetrate.
• On the down side, we’ll see if 4,164 can hold it. Otherwise, the next level of support is at 4,128, followed by 4,110.

What Happened

There was no major news event on Friday to cause the market to fall. However, market volatility was caused by concerns about inflation and the prospect of an early interest rate hike by the Federal Reserve. The region between 4,224 and 4,230 looked troublesome on the Renko chart. The market seems weary. Since it has been unable to break over this barrier for several days, the obvious course of action is to retest the support levels below 4,200 and see if it can attract buyers once more.

What’s Next

• The SP 500 FUTURES is currently weighed down by the 4,200 region. To maintain the rising trend, the futures market may need to re-establish itself above 4,200 first, and then over 4,224.
• If the 4,164 level fails, the next level of support is between 4,110 and 4,128.
• The long-term rising trend line is now close to 4,150. If the SP 500 falls below 4,164 and then finds support at 4,128, the trend line has been broken. The impact may be substantial.

Daily Renko Chart

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

On the daily chart above, we can see that the price is still above the long-term upward trend line, which is now at 4,150. Although 4,128 and 4,110 might provide further support if 4,164 fails, the trend line is broken when the price goes below 4,150. When it does, the ramifications might be serious. In the following days, we’ll keep a careful eye on the situation.

The price is now in the key support zone shown in yellow on the hourly chart below. It is critical that this region be safeguarded. Otherwise, the purple region between 4120 and 4160 represents the next area of support. However, if the price goes below 4,150, as indicated in the daily chart above, the long-term rising trend line may be broken.

Hourly Renko Chart

The failed W, double bottom pattern is shown in yellow on the 5-minute chart below. The zone between 4,224 and 4,230 looked to be too difficult to break through. The W double bottom is at 4,200, and it has now been broken. It is clear that the bulls will struggle to push the price over 4,200 in the immediate run. It may take some time to consolidate before retesting 4,200 and above.

5-Minute Renko Chart