Weekly Technical Outlook: Potential Support Zones for Tesla (TSLA), S&P 500 Index, and EUR/GBP

Welcome to the last full trading week of the month!

Cap your month on a strong note by taking advantage of Tesla (TSLA), EUR/GBP, and the S&P 500 Index (SP500) hanging out near key support zones.

Get ’em while they’re hot!

S&P 500 Index (SPX500): 4-hour

S&P 500 Index 4-Hour Chart

The S&P 500 index (SP500) has been on downtrend since turning lower from the 4,800 levels at the start of the year.

Luckily for U.S. equities holders, the index is finding buyers around the 3,500 area. In fact, the equities index is forming a Inverse Head and Shoulders pattern on the 4-hour time frame!

Is SP500 ready for a reversal? Look out for a clear break above the 3,750 – 3,800 “neckline” that could push the index closer to the 3,900 zone and the moving averages on the chart.

If equities don’t get enough momentum above the area, though, then y’all gotta be ready for a possible trip back to the 3,600 lows.

EUR/GBP: 4-hour

EUR/GBP 4-Hour Forex Chart

If forex plays are more your thing, then you should pay closer attention to EUR/GBP making its second bearish flag pattern since breaking its September trend line support!

See, EUR/GBP is currently trading near the .8700 psychological handle that’s also around an “ascending channel” support.

But don’t be fooled by the channel action!

For one thing, the channel is looking a lot like a bearish flag that EUR/GBP has broken earlier this month.

And then there’s the 100 SMA that just crossed below the 200 SMA. While SMA crossovers don’t necessarily lead to trend changes, THIS particular chart’s last three crossovers turned out to be legit trend signals.

You can take advantage of the current bounce from .8700 and buy until the bullish momentum stops.

Or you can wait for a clear break below the current pattern and aim for October’s lows or new monthly lows.

Tesla, Inc. (TSLA): Daily

Tesla Inc (TSLA) Daily Chart

Here’s a simple support play for ya!

Tesla Inc. (TSLA) is flirting with the $200 – $205 zone that has been holding as support since 2021.

Another bounce at the unbroken support zones could lead to a retest of the $240, $265, or even $315 previous areas of interest.

Will TSLA shoot higher this week? Stochastic is favoring the bulls with its oversold signal while green candlesticks on the daily time frame suggest at least some buying interest.

Traders who are confident that TSLA will see another bounce can scale in at current levels and place stops just below the support area.

Just make sure that you’re also prepared to flip biases in case we see a downside breakout this week!