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- 1 ServiceNow stock price closed at $549.87 while witnessing a gain of 0.56% during the intraday session.
- 2 NOW stock trades above the 20,50,100 and 200-day EMAs.
- 3 The year-to-date return of ServiceNow stock is 39.18%.
NOW stock price has turned bullish after the release of the first quarter’s earnings report on 26 April 2023, rising from the low of $430. This move led to the formation of an annual high at $576.68, providing a return of roughly 34% to the investors.
Since the middle of January, 2023, the stock price was stuck in a consolidation zone ranging between $413 and $495.50. After the release of the earnings report and formation of support at the $430 level, the stock price gained bullish momentum and shattered the resistance level of $495.5.
Currently, the price has not been able to stabilize above the $560 level and is headed toward the recently formed support level of $527. If bears can push the price below the recently formed support of $527, there is a possibility that the price might melt down toward the immediate support level of $495.50 level.
On the contrary, If the price can stabilize above $527, there is a high probability for the price to bounce higher and retest the yearly high. If bulls are successful in the move, the price might rise toward the next resistance level of $600, thereby causing a gain of approximately 4.30%.
Advancement In ServiceNow
ServiceNow has acquired 27 companies until now. ServiceNow recently announced the acquisition of G2K. G2K is an artificial intelligence powered platform which aims to integrate IoT technology into their platform, initially targeting the retail industry but with potential applications in other sectors.
Gartner, a reputable IT research firm, named ServiceNow a leader in enterprise low-code application platforms. ServiceNow has recently launched a generative AI offering aimed at optimizing digital workflow and increasing productivity.
The next earnings report is to be released on 26 July 2023. Consensus has estimated the revenue to be $2.13 Billion and earnings per share to be $2.047.
Will NOW Stock Price Break Above $575?
The stock price is trading above the 20,50,100 and 200-day EMAs, indicating bullish momentum in the price. The 20-day EMA has been acting as support. Chaikin money flow score is -0.01, indicating weakness as the price has started to decline after surging.
Relative strength index (RSI) trades at 58.29, indicating that NOW stock price still has some bullish momentum left. RSI reached the overbought zone and started to decline for price to witness a pullback. NOW stock price touched the upper band of bollinger and started to decline, indicating a chance of melt down toward the $527 level.
Conclusion
The market structure and price action of ServiceNow is bullish, but since the past few days it has entered into a corrective phase and is headed toward $527. The technical parameters indicate a decline in bullish pressure. ServiceNow has some major developments going on which is good for its future growth. By leveraging AI/ML innovations, ServiceNow aims to boost its customer growth.
Technical levels
Major support: $527 and $495.50
Major resistance: $575 and $600
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
