Chart of the Day: After a Rough Go, This Tech Holding Is Battling Back
The stock may have found a bottom and is starting to look up.
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High-beta names like ServiceNow NOW can really drive you mad. We look for price patterns to develop and then suddenly an event like earnings turns the chart on its ear.
A budding up trend for NOW was completely destroyed following its earnings release in July. It certainly looked promising at the time when the company posted robust numbers and boosted guidance.
The stock had a miserable month of August, far worse than the rest of the stock market. It makes little sense to us that NOW would be down 10% or more in 2025, but it is what it is. We believe the opportunity for this stock is into the future.
Looking to the chart, NOW had a brief downturn, and you can see the channel established of lower highs, lower lows. But that seemed to stop at the $840-850 level, and now a modest uptrend has appeared. Further, the indicators are getting more bullish with strength in the Chaikin money flow, MACD (moving average convergence/divergence) on a buy signal and stochastics (momentum) rather strong.
With no big news for the company scheduled until late October, perhaps it is time to pick at more shares. We last added more NOW shares a couple weeks back as the dip was just too much to resist.
We like ServiceNow in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
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At the time of publication, TheStreet Pro Portfolio was long NOW.
