Overview

Technical Analysis and Forecast

On Sunday, we began trading the SP 500’s September FUTURES contract. The figures in the technical analysis may vary somewhat, but the general picture and the forecast remain the same. Since Sunday, the SP 500 FUTURES has made a significant comeback. It did drop to a low of 4120 overnight, breaking below the long-term upward trend line. After striking the low, it began to recover and was able to close above the trend line without difficulty. We can’t even notice the breakdown of the trend line on the daily Renko chart. The technical analysis and forecasts on the Renko chart revealed a very strong V-shape rebound. The longer-term bullish trend line has remained unchanged.

• The traditional 6-point brick size is used in the Renko chart.
• The Renko chart’s upper barrier is the record close of 4,242.
• On the downside, the 4200 zone is the first line of defense, followed by the 4,156 zone.

What Happened

Just as we were beginning to wonder if the SP 500 would be able to continue its upward momentum after Friday’s finish, the SP 500 mounted another dramatic and astonishing V-shape recovery. It did overnight break below the upward trend line, but it was only for a short while. It’s back to where it started in just two days. It’s nearly at an all-time high. The bullish momentum appears to be really strong. It’s extremely likely that we’ll break another record this week, if not tomorrow.

What’s Next

• The only obstacle on the upside is 4,242. If the SP 500 breaks over this level, it will be back in record territory.
• On the downside, there are a number of support levels that can help to maintain the bullish trend. They are 4,200, 4,156, and 4,122, respectively.

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

In the daily chart above, prices are holding above the trend line, which is currently at 4,156. It’s getting close to breaking the record. We can expect another all-time high in the near future. If there is a downturn, the price should be able to stay above 4,200.

Daily Renko Chart

The SP 500 closed above the prior high of 4,218 barrier level on the hourly chart below. The hourly record close of 4,254 is within reach. The SP 500 could be able to take a pause above 4,200 if prices are unable to hit another all-time high tomorrow. If the SP 500 experiences a downturn, the yellow zone could provide significant support.

Hourly Renko Chart

The V-shape rebound was also very strong in the 5-minute Renko chart below. It readily broke above the failed W double bottom pattern’s prior neck line, highlighted in yellow, and continued to go upward without difficulty. More highs are possible in the foreseeable future. All the way down to 4,160, there’s plenty of support.

5-Minute Renko Chart