ServiceNow Hits Resistance After Earnings
ServiceNow is exactly the type of cloud-computing growth stock that benefited from the pandemic. Is it now rolling over as the crisis fades?
Consider the dive under $500 in January. NOW rebounded on strong quarterly results and an upgrade from Piper Sandler last week. Yet, prices failed to reclaim $600.
That level could be important because it’s near two lows in December. It’s also near the 200-day simple moving average (SMA).
Speaking of the 200-day SMA, the 50-day SMA is falling toward that key line: a potential “death cross.”
Third, notice how stochastics are sliding back from an overbought condition.
Finally, you have the valuation argument because NOW trades for about 475 times earnings. (Near the top of the overall S&P 500, according to TradeStation data.) That’s a potential headwind given the rising interest-rate environment.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
Consider the dive under $500 in January. NOW rebounded on strong quarterly results and an upgrade from Piper Sandler last week. Yet, prices failed to reclaim $600.
That level could be important because it’s near two lows in December. It’s also near the 200-day simple moving average (SMA).
Speaking of the 200-day SMA, the 50-day SMA is falling toward that key line: a potential “death cross.”
Third, notice how stochastics are sliding back from an overbought condition.
Finally, you have the valuation argument because NOW trades for about 475 times earnings. (Near the top of the overall S&P 500, according to TradeStation data.) That’s a potential headwind given the rising interest-rate environment.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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