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ServiceNow Hits Resistance After Earnings

NYSE:NOW   ServiceNow, Inc.
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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