ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide.
Take a look at the 1-year chart of Service (NYSE: NOW) below with added notations:
NOW has stalled at the same $280 resistance (red) twice over the past month. The stock has recently turned lower, but it is still sitting just a few percentage points below that $280 level. A solid close above the resistance should lead to another leg higher for NOW.
The Tale of the Tape: NOW has a 52-week resistance at $280. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT