Overview

Technical Analysis and Forecast

The SP 500 FUTURES moved sharply higher after the May job numbers because the tamed numbers eliminated the worry that the FED’s tapering might happen sooner than expected. Based on the Renko chart technical analysis and forecast, things are looking more bullish at the moment.

• The Renko chart uses a traditional 6-point brick size.
• On the upside, 4230 is the immediate resistance zone.
• Once the SP 500 Futures closes above 4230, sky is the limit.
• On the downside, multiple support levels can keep the SP 500 FUTURES remaining bullish. They are at 4200, 4176, 4164, followed by 4110 / 4128.

What Happened

The SP 500 Futures moved decidedly higher and above 4200 after the release of the May job numbers. However, it did not break above the previous record high, 4238. Nonetheless, it closed above the previous record close of 4224 at 4228. Things are looking more bullish at the moment. More higher highs should be anticipated.

What’s Next

• On the upside, except for the previous all time high of 4238, there is not any resistance at the moment.
• On the downside, 4200, followed by 4164 / 4176 are the strong support areas.

Daily Renko Chart

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

In today’s daily Renko chart above, the SP 500 FUTURES closed at a record high. There is not any visible resistance on the chart right now. More record highs can be easily expected. On the downside, we did see a retest of 4200 and the close of 4194, which confirmed the 4200 support level. Nonetheless, multiple support levels, 4200, 4176, and 4164, do reinforce the bullish scenario.

In today’s hourly Renko chart below, the only visible resistance is the previous record close of 4236. If the futures could continue the bullish momentum and close above 4236, more higher highs should be expected. It is clear in the chart the area between 4224 and 4176 could provide the support needed to sustain the bullish scenario. It does look promising even if the price cannot move higher immediately. The futures should be able to consolidate above 4176.

Hourly Renko Chart

In the 5-minute Renko chart below, 4200 and 4212 are now the support levels. There are quite a few interactions between 4176 and 4212. This area can also provide strong support. The next area of support is between 4152 and 4176. The bullish scenario does seem to be in favor.

5-Minute Renko Chart