NOW Oversold Signals Emerge Near $150 Zone

$ServiceNow(NOW)$

NOW Tests Key Support: Momentum Divergence Suggests $150-$155 Consolidation Zone

Latest Close Data

Closed at $152.59 on Dec 26, down -1.15% (-$1.77). Currently trades ~36% below its 52-week high of $239.62.

Core Market Drivers

The stock remains under pressure amid a broader tech sector rotation and concerns over enterprise IT spending.
Despite the near-term weakness, ServiceNow's dominant position in workflow automation and strong AI integration (Now Assist) provide a solid long-term foundation.

Technical Analysis

Volume of 3.9M shares was below average (VR 0.51), indicating lack of conviction in the sell-off.
The MACD (-4.58, -3.68, -1.80) remains in bearish territory but the histogram shows a potential deceleration in downward momentum.
The RSI (6-day: 29.1, 12-day: 33.2) is approaching oversold levels, hinting at a possible near-term bounce.

Key Price Levels

Primary Support: $152.01 (Today's Low) - A break below could target the 52-week low of $135.73.
Strong Resistance: $182.45 - The recent resistance level that needs to be conquered for a trend reversal.
Immediate Pivot: $152.55 - Today's identified support; holding above is key for short-term stability.

Valuation Perspective

The stock trades at a forward P/E of 43.96, which is below its historical average of 57.18 and significantly below its +1 Std. Dev. of 64.53, suggesting the valuation compression may be overdone relative to its own history.

Analyst Targets

Coverage remains overwhelmingly bullish. 43 analysts have an average price target of $224.14 (+47% upside), with 43 "Strong Buy/Buy" ratings, 3 "Hold", and 1 "Underperform".

Weekly Outlook

Expect consolidation between $150 and $155 in the near term as oversold conditions are worked off.

A successful hold above $152 support could lead to a rebound towards $160. A break below $150 may accelerate selling towards the next major support.

Risk Disclaimer

This analysis is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal.

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