ServiceNow ( NOW) is scheduled to report earnings on Oct. 27, so let's check out the charts.
We had reviewed the charts of NOW on Oct. 6, and recommended, "Trade from the long side risking to $599."
With earnings getting closer, let's peek at the charts again.
In this daily bar chart of NOW, below, we can see that prices are testing the $660-$680 area, which is minor resistance from September. Prices are trading above the rising 50-day and 200-day moving average lines. The On-Balance-Volume (OBV) line has been strong from early June and tells us that buyers of NOW are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is crossing to a new buy signal.
In this weekly Japanese candlestick chart of NOW, below, we see a bullish longer-term trend. Prices are trading above the rising 40-week moving average line. The weekly OBV line is positive and so is the MACD oscillator.
In this daily Point and Figure chart of NOW, below, we can see a $713 price target.
Bottom line strategy: Traders should stay long NOW. Add to longs aboved $680. The $713 area and then the $750 area are our nearest price targets. Raise stops to $619.
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