Good technical signals and a possible breakout for SERVICENOW INC.

Our stock screener has spotted SERVICENOW INC (NYSE:NOW) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:NOW.

Analyzing the Technical Aspects

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall NOW gets a technical rating of 10 out of 10. Both in the recent history as in the last year, NOW has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, NOW did better than 92% of all other stocks. On top of that, NOW also shows a nice and consistent pattern of rising prices.
• NOW is one of the better performing stocks in the Software industry, it outperforms 85% of 285 stocks in the same industry.
• NOW is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so NOW is performing more or less in line with the market.
• In the last month NOW has a been trading in the 729.23 - 850.33 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of NOW for a complete technical analysis.

How does the Setup look for NYSE:NOW

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:NOW has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, NOW also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 827.62. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 779.66, a Stop Loss order could be placed below this zone.

How can NYSE:NOW be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:NOW and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.