To The Moon

Hi everyone. Today we’ll look at a particular software company for the first time:

ServiceNow, Inc. (NYSE: NOW)

NOW has been trading in a large ascending channel (in green) since 2017 and a secondary ascending channel (in blue, trend markup) since 2022. Stochastic RSI and RSI are in the middle of the range.

The daily chart shows NOW breaking out from a shorter-term descending broadening wedge pattern and successfully retesting the breakout. Stochastic RSI is nearing a bullish crossover, suggesting that the uptrend is set to continue. The next target for this move should be to fill the bearish gap created at 776.65-785.92, before retesting the latest ATHs at 815.32.

If this breakout fails, I’m watching for a retest of 707.60 (2021 ATHs). There are supports further down at the 674.60-676.19 bullish island gap and at the 639.76-646.50 zone.

What is my long-term target on NOW based on Fib extensions?

Well, the 1.618 Fib extension (assuming swing low is lowest historical price of NOW, and the swing high is the 2021 ATH) sits at 1,130.92. That represents a near 50% upside move in the coming years, provided that the bullish thesis plays out.

And with that, I initiate coverage on NOW with a BUY sentiment. Software stocks were badly hit in the past few weeks, but has now seen an improvement in sentiment.

Sentiment: BUY

Summary (with Price Targets - NFA):

• Trading in a large ascending channel (in green) and a secondary ascending channel (in blue, trend markup)

• Broke out of a descending broadening wedge consolidation with a short-term measured move back towards ATHs and a longer-term measured move towards the 1.618 Fib extension at 1,130.92

• Failed breakout should see a retest of 707.60 and possibly the bullish island gap sitting at 674.60-676.19

All right, that’s all for now. Till next time!

$ServiceNow(NOW)$ $iShares Expanded Tech-Software Sector ETF(IGV)$ $Palo Alto Networks(PANW)$ $MongoDB Inc.(MDB)$ $Zscaler Inc.(ZS)$

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