ServiceNow stock drops as bearish signals outweigh AI and cybersecurity expansion

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ServiceNow slides 3.51% to $131.56 today

Highlights

ServiceNow (NOW) trades at $131.56, sharply below its MA-20 ($141.06), MA-50 ($154.67), and MA-200 ($179.58), indicating pronounced multi-timeframe downside pressure.
Momentum indicators including MACD, ADX, and RSI (at 40.18) signal persistent bearish bias, with sellers maintaining strong control and little near-term recovery potential.
Key support is near $130.35, with resistance at the Ichimoku Kijun ($142.86); a breach below support may trigger further declines, while upside probability remains below 20%.

Acquisition strategy and AI alliances drive investor anticipation

ServiceNow is preparing to release its fourth-quarter and full-year 2025 financial results, drawing notable investor and analyst attention. The company has announced the planned acquisition of Armis, a cybersecurity platform, for $7.75 billion in cash, and completed the acquisition of Veza to enhance its identity security capabilities. ServiceNow is also expanding in artificial intelligence by deepening partnerships with OpenAI, NVIDIA, and Microsoft, and launching AI-focused offerings such as the AI Control Tower.

Bearish momentum prevails amid resisted rebounds and neutral signals

NOW faces persistent technical weakness, trading well below major moving averages and recently seeing resistance near the Ichimoku Kijun at $142.86. The MACD and ADX both indicate a bearish bias, while daily RSI at 40.18 and bearish readings from Stochastic RSI and Bull/Bear Power suggest continuing seller dominance. The Commodity Channel Index is neutral, and the Awesome Oscillator reinforces negative pressure. Short-term movements are volatile, with price action holding close to today’s intraday low.

Narrow sideways trading seen as downside risk persists

Over the next five sessions, the price is likely to oscillate within a typical volatility band, ranging from $130.35 to $134.87. The probability of an upward move remains low, with downside pressure dominating technical signals. Price stability in a narrow sideways corridor is the baseline scenario, while a sustained break below $130.35 could trigger further weakness. Any bullish momentum would need a decisive move above $142.86 to reverse current selling pressure.

Anton Kharitonov, expert at Traders Union, sees ServiceNow stuck in a clear technical downtrend. Sentiment remains cautious despite fundamental news like acquisitions and AI expansion. Downside momentum dominates unless $142.86 is reclaimed. "Base case remains for a weak, narrow range — if $130.35 breaks, bears stay in control."

Last time, analysts noted that ServiceNow, Inc. is trading below all key moving averages, indicating persistent bearish momentum despite a brief intraday rebound and ongoing selling pressure, with technical indicators such as RSI and CCI suggesting potential seller exhaustion. The price is expected to remain range-bound in the near term, with $133.25 acting as resistance and $128.00 as support, as underlying sentiment favors sideways or downward movement.

Source of Data: NOW Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.