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 my added notations:
NOW has hit the $275 mark (red) as resistance multiple times over the past couple of months. The stock has made it close to that level once again and could be looking to finally break higher. A solid close above $275 should lead to much higher prices for NOW.
The Tale of the Tape: NOW has a key level of resistance at $275. A long trade could be entered on a hold above that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $275.
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