NOW GAPThis stock has moved well on gap use the technique I taught on how to trade this gap and go, potential target around 88 from its 72 level, look at longer term options and wait for breakout of today's high or sell off and bounce.
4NOW trade ideas
NOW get short nowThe enterprise software company's Q2 earnings met analyst estimates, and ServiceNow raised its revenue forecast.
But ServiceNow stock was down.
Technically we had wide wedge that gave good buying opportunities with reversal candles (check my long ideas in the links below). But fow now, stock resolved its indecision pattern to downside on increasing volume. Combine it with overall market that entered into correction and that is how you get high-winning trade. I like how it holds near lows of its recent move down, while market bounced off a bit from lows - relative weakness. Plus well defined stop above $56.25, as 8 EMA is in control with target at $48.70, then $46.00 make yhis trade attractive from Risk/Reward point of view.
NOW get long now, part 2This cloud-service company looks ready for another leg higher.
Stock came from $26.33 to $71.80 for one year. Then agressively sold off from high. Pretty deep pullback to $46 which we can measure with fib levels - 61,8% is support - the last chance for bulls to prove that it is not reversal.
I was bullish on it since Reversal on 15 of May (check my thoughts in the link below). Since then, it had nice move through resistance $55-$56 right to $64.61 from where it had 4 days of selloff. It found bottom and formed support on previous resistance around $55.00-$55.60 (previous resistance). I like the way how buyers regrouped and with yesterdays candle it broke up consolidation with bullish close near intraday high.
So, buyers should hold above $58 to keep active traders attention, then we can see some follow through to the top of this wedge. It has some room to $64 and with well-defined risk below $55.60, it makes this trade attractive from Risk/Reward point of view with high probability of winning, as this market stays bullish (active, intermidiate and macro trends are still intact).
We have earnings on July 30 after market close.
NOW get long nowStock came from $26.33 to $71.80 for one year. Then agressively sold off from high. Pretty deep pullback which we can measure with fib levels - 61,8% is support - the last chance for bulls to prove that it is not reversal.
Yeasterday it went through lows but managed to get back and closed on highs. Showed us relative strength vs broad market (SPY, DIA and QQQ showed some breakout failure signals and closed around 1% down)
Despite it is below all key moving averages I have thoughts that money can rotate into underperforming stocks as many sectors are extended and markets are nervous so it is difficult to buy them.
Trade Plan:
Enter: now @ $47.82 or wait for additional confirmation brak up through consolidation resistance @ $49
Stop: below low of the day where sellers failed to hold below $46 then we have support from $44 to $45
Target: $53 swing high where 200 MA lies then we have $55
