ServiceNow (NOW) has seen its charts turn sideways from September and prices have recently rallied above the highs of the past three months and just closed above the declining 200-day moving average line. Let's see what else is going on with the provider of enterprise cloud computing technology.
In this daily bar chart of NOW, below, I can see that trading volume has increased since late September, telling me that investor interest in NOW has improved, which is a positive development. The On-Balance-Volume (OBV) line has turned higher from October. The Moving Average Convergence Divergence (MACD) oscillator has crossed above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of NOW, below, I see a bottom reversal pattern in October -- a harami marks the low. Prices have closed above the declining 40-week moving average line. The weekly OBV line shows a rise from September, telling me that buyers of NOW are more aggressive than sellers. The MACD oscillator made a double bottom last year and is improving but still below the zero line.
In this daily Point and Figure chart of NOW, below, I can see a recent upside breakout on this chart with a $511 price target projected.
In this second Point and Figure chart of NOW, below, I used weekly price data. Here the chart shows a price target in the $603 area.
Bottom line strategy: Traders looking to go long NOW should be patient and wait for a pullback to the $420 area. Risk to $390. The $500-$520 area is my price target for now.
