ServiceNow, Inc. (NOW) has definitely been showing signs of strengthening technically and Thursday's close of 428.43 was the company's highest close since September.
Bullish momentum is accelerating, as evidenced by the rapidly-rising PPO. Volume has been stronger than usual in January 2023, which is accompanying the bullish price action. One negative technically, however, has been the consistent drop in the AD line. Check out this chart:
Enter ServiceNow, Inc. (NOW):
I really like what's going on "under the surface", but now let's play devil's advocate. NOW reports earnings next Wednesday, January 25th. I've seen plenty of false breakouts ahead of poor earnings reports to allow big money an opportunity to exit at a solid price before more negativity surfaces with earnings. The other issue I have is with the industry group. Software ($DJUSSW) has been AWFUL on a relative basis. In the lowest panel of the chart above, you can see that software continues to weaken relative to the S&P 500. Is NOW's recent relative strength vs. software a signal that higher prices are likely? Or is this nothing more than one more head fake in a continuing downtrend? I'm bullish the stock market in 2023, so I tend to err on the bullish side of the argument, so I think NOW will report strong results, but this is by no means a slam dunk
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Happy Trading!Tom BowleyChief Market StrategistEarningsBeats.comBetter Timing. Better Trades. |