ServiceNow (NOW) shares surged over 10% in after-hours trading Wednesday following a strong earnings report and an optimistic subscription revenue forecast.
The stock closed regular trading at $898, breaking out above the upper trendline of a descending channel—a bullish technical signal pointing to potential trend reversal.
Quarterly earnings beat expectations, alleviating investor fears that had dragged the stock down nearly 25% year-to-date, primarily due to concerns over potential federal spending cuts under the Trump administration.
CFO Gina Mastantuono reassured investors, saying the company remains “very confident” in its ability to navigate evolving macro conditions, including trade uncertainty.
She noted that demand from enterprise clients remains robust, despite worries about government budget tightening and tariff-driven disruptions.
Key Technical Levels to Watch
Support Level:
$807 is a crucial support level. A break below this could negate recent bullish momentum.
Overhead Resistance Zones:
$900 – Current resistance near a trendline dating back to September. A close above would confirm a breakout.
$1,000 – Psychological barrier; could prompt profit-taking near mid-February highs and November retracement.
$1,160 – Longer-term resistance zone, aligning with prior historical peaks and fib retracement levels.
The Relative Strength Index (RSI) confirms bullish momentum but remains well below overbought territory, leaving room for further upside.
Analysts and traders see this as a potential trend shift if momentum continues, especially with the company’s AI and cloud-based solutions gaining traction in uncertain markets.
