ServiceNow Jumps 4.57% to $928.60 as Technical Rebound Gains Momentum

ServiceNow (NOW) surged 4.57% in the most recent session, closing at $928.60, marking its second consecutive daily gain and a 7.39% advance over this period. This rebound follows a dip to $864.66 on August 26th, signaling heightened activity near critical technical levels. The subsequent analysis evaluates key technical indicators for contextual insights.
Candlestick Theory
A bullish reversal pattern emerged over the last three sessions: A long red candle on August 26th ($855.08 low) established support near $850, followed by a bullish engulfing pattern on August 27th that reclaimed the $887 close. The latest white candle’s upper shadow testing $935.78 confirms resistance near the $935-$940 zone—a level that capped rallies in late July. This pattern suggests buyer conviction defending the $850 support, with the $935-$940 band now acting as immediate resistance.
Moving Average Theory
The 50-day MA ($942) and 100-day MA ($965) remain above the 200-day MA ($905), sustaining the longer-term uptrend. However, current price trades below all three averages, confirming near-term bearish pressure. The 50-day MA’s descent since late July reflects fading intermediate momentum, while the 200-day MA’s upward slope provides structural support. A sustained close above the 50-day MA would signal trend improvement.
MACD & KDJ Indicators
MACD histogram readings improved from deeply negative territory, though the signal line remains below zero—reflecting easing downward momentum without confirming bullish reversal. KDJ’s K-line (42) and D-line (38) are rebounding from oversold thresholds after converging near 20 last week. This alignment suggests waning bearish pressure, though neither oscillator yet flags decisive bullish momentum.
Bollinger Bands
Bands contracted sharply to a 6% width during August’s consolidation (vs. 15% in July), signaling dampened volatility before the recent breakout. Price reclaimed the 20-period midline ($892) and now challenges the upper band ($940), suggesting a volatility expansion phase may be underway. This breakout above the midline supports short-term bullish bias.
Volume-Price Relationship
Recent gains occurred alongside expanding volume—notably, the 4.57% advance on August 28th recorded 3.04M shares traded, 153% above the 50-day average. This volume spike confirms buyer conviction at support. Conversely, the August 26th sell-off saw above-average volume (2.68M shares), suggesting capitulation before the rebound.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from 32 (approaching oversold) to 58, exiting neutral territory and reflecting strengthening momentum. While this move avoids an overbought warning, the RSI remains below the key 60 level that typically precedes sustainable uptrends. Further improvement above 60 would reinforce bullish sentiment.
Fibonacci Retracement
Using the July high of $1,051 and August low of $855.08, key retracement levels include $901.29 (23.6%), $929.90 (38.2%), and $953.04 (50%). The current price near $928.60 approaches the 38.2% resistance at $929.90—a convergence zone aligning with the $935-$940 candlestick resistance. Successful clearance could target $953 (50% retracement), whereas rejection here may reactivate downside pressure.
Confluence & Divergence Observations
Confluence exists near $930-$940, where Fibonacci resistance, the recent high, and Bollinger Band upper limit converge—making this a pivotal breakout zone. Bullish volume confirmation and KDJ/MACD recovery support upside potential. Divergence appears in the RSI’s failure to reach overbought territory during July’s $1,051 peak (RSI peaked at 68), foreshadowing that prior pullback. Currently, no significant bearish divergences are evident in oscillators. A decisive break above $940 with sustained volume could target $980-$1,000, while failure here risks retesting the $855-$850 support.