• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

ServiceNow's Charts Are Showing Improvement

Let's see where our price target is now.
By BRUCE KAMICH
Apr 07, 2021 | 09:02 AM EDT
Stocks quotes in this article: NOW, XM

For his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Bill McDermott, CEO of ServiceNow (NOW) , and Ryan Smith, Founder and Executive Chairman of Qualtrics (XM) , to discuss their recently-announced partnership.

Smith said that customers know what a good experience looks like and they only want to deal with brands that can offer it. That's why Qualtrics' experience management platform is so valuable.

McDermott added that by combining Qualtrics with ServiceNow's workflow automation systems, they can now provide an entire system of action that's based on customer sentiment and feedback.

The combination creates a loyalty effect that can completely change how companies interact with their customers.

Smith said that with so many companies transitioning to our new post-pandemic world, reliable customer feedback has become more crucial than ever.

In our last review of NOW back on December 8 we wrote that "Traders who are still long from our prior recommendations should do two things now. First, raise stop protection to $485 from a close below $390. Second, because of the bearish divergence from the OBV line and from the momentum study, I would book some profits here. The pace of the rally has slowed and volume is not expanding. These are signs that a sideways or lower correction could unfold."

Prices weakened into January but would not have stopped us out. A rally in February carried prices to new highs before a deeper correction in March. Remaining longs should have been stopped out at $485.

Let's see if the charts favor a new position.

In this daily bar chart of NOW, below, we can see that prices have tested the rising 200-day moving average line for much of March but are now trading just above it. The slope of the 50-day average line is negative and prices are below that indicator. The trading volume looks a bit heavier in March and that could mean that new buyers have entered.

The On-Balance-Volume (OBV) line stalled in January and diverged in February when prices made new highs. The OBV line weakened into March telling us that sellers were more aggressive. It is early but the OBV line shows a little improvement into April.

The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but has crossed to the upside for a cover shorts buy signal.

In this weekly Japanese candlestick chart of NOW, below, we can see a mixed picture. Prices turned lower from a top reversal pattern in February. The decline shows prices testing the rising 40-week moving average line and I do not see a clear bottom reversal pattern.

The weekly trading volume does not show anything important and the weekly OBV line has been stalled the past two months. The MACD oscillator has been weakening since November but has started to narrow.

In this daily Point and Figure chart of NOW, below, we can see a potential upside price target in the $554 area.

In this weekly Point and Figure chart of NOW, below, we see that the software is projecting the $614 area as a possible price target. One drawback of Point and Figure charts is that they ignore time.

Bottom line strategy: Aggressive traders could look to buy a dip to $500 on NOW risking to $470. The $550 area is our target for now.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Technology | Technology Hardware & Equipment | Mad Money | Executive Interview

More from Investing

The 5 Pillars of Exceptional Trading

James "Rev Shark" DePorre
Apr 10, 2021 10:00 AM EDT

When you put them together, trading success is nearly inevitable.

Market's 'Superficial' Highs Are Only Skin Dip

James "Rev Shark" DePorre
Apr 9, 2021 4:36 PM EDT

You can't call this market overbought when so much of it isn't participating.

Pinterest: Double Top or Breakout Pending?

Bruce Kamich
Apr 9, 2021 3:00 PM EDT

What would I do in this case? Here's the logical choice.

I'm Continuing to Build a Position in Skillz

Timothy Collins
Apr 9, 2021 2:24 PM EDT

SKLZ shows explosion moves to the upside when it emerges from the oversold area.

Royalty Pharma Shows Promise

Bruce Kamich
Apr 9, 2021 1:10 PM EDT

Here's how traders should play RPRX right now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • 11:18 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 5 Pillars of Exceptional Trading
  • 08:05 AM EDT BOB LANG

    Bitcoin vs. Gold: Which Should You Invest In Now?

    Read my article TheStreet here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login