ServiceNow advances 3.11% on strong earnings and buyback, but bearish trend persists below $125.95 resistance

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ServiceNow rises 3.11% this week

Highlights

ServiceNow (NOW) trades at $103.87, well below MA-20, MA-50, and MA-200, confirming persistent selling pressure across all timeframes.
Momentum indicators (MACD sell, ADX strong, Awesome Oscillator bearish) confirm a dominant downward trend despite oversold signals (RSI 24.91, CCI -132.99) suggesting a possible short-term bounce.
Expected consolidation is between $98 and $108 over the next five days, with resistance at $125.95 and less than 20% probability of a sustained price increase.

Strong results and AI advances drive optimism despite broader weakness

ServiceNow reported strong financial results with annual revenue surpassing $10 billion and Q4 2025 sales of $3.6 billion, reflecting 20% year-over-year growth and a 98% renewal rate. The board has authorized a new $5 billion stock repurchase, expanding on an earlier $2 billion buyback. The company also advanced its AI strategy through new integrations with Anthropic and OpenAI and saw rapid adoption of its AI-native platforms.

Oversold technicals deepen as downward momentum dominates this week

On the weekly chart, NOW is well below all key moving averages, with the Ichimoku Kijun resistance at $125.95 and no nearby support, highlighting prevailing bearish momentum. Weekly RSI is deeply oversold at 24.91, while the MACD signals continued weakness and the ADX confirms the strength of the ongoing downward trend. Weekly oscillators—including CCI at -132.99—support the oversold narrative, though Stochastic RSI suggests potential for a technical rebound, yet broader signals stay bearish.

Consolidation favored as technicals limit breakout risk next week

For the next five to seven trading days, NOW is expected to move within a price range of $98.00 to $108.00. The baseline scenario points to consolidation within this corridor, with key weekly trend and momentum indicators suggesting a low probability of a sustained rally. A bullish break above $125.95 is unlikely without a shift in momentum, while a drop below $98 could extend losses if seller dominance persists.

Parshwa Turakhiya, analyst, sees ServiceNow showing resilience with a 4.7% gain this week, yet the price remains trapped under all major moving averages. Despite upbeat financial news and aggressive stock buyback plans, the technical backdrop is decisively bearish, with deep oversold signals but no firm support nearby. The expert notes that momentum indicators and oscillators suggest sellers are still in control, leaving NOW stuck between $98.00 and $108.00 over the coming week. He believes a technical rebound is possible, but there is low probability of a sustained breakout unless sentiment shifts. "While there’s potential for a short-term bounce, I won’t chase upside until evidence of buyers reclaiming higher levels emerges."

Previously it was reported that ServiceNow, Inc. is exhibiting sustained bearish momentum, trading notably below all major moving averages, with deep oversold readings on RSI, Stochastic RSI, and CCI, while MACD and ADX also confirm a prevailing downtrend. Support is seen near $98.00 and resistance at $108.00, with the likelihood of continued sideways action as bearish signals persist despite temporary rebounds.

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

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