Technical Analysis
Based on the latest market data and technical indicators, ServiceNow (NOW) shows the following key signals:
RSI at 52.58 indicates a neutral momentum, sitting near the middle of the overbought/oversold range. The MACD reading of -5.88 suggests some short-term bearish pressure.
The stock is trading above both its 20-day moving average ($1064.60) and 200-day moving average ($868.46), indicating a strong long-term uptrend despite recent consolidation.
News Impact
Several significant developments could impact NOW's price next week:
The acquisition of AI firm Cuein announced on January 17th, which aims to enhance NOW's AI capabilities in customer interaction analysis.
Strong institutional interest with 934 institutions adding positions versus 827 reducing, showing net positive institutional sentiment.
Upcoming analyst/industry conference call on January 24th focusing on monitoring and observability landscape.
Price Prediction for Next Week
Based on technical indicators and recent news:
Support levels: $1012.19 (Fibonacci S1) Resistance levels: $1077.79 (Fibonacci R1)
Expected price range: $1062-$1080
Target scenarios:
Trading Recommendation
BUY with entry point at current levels ($1071.48) with a stop loss at $1062.
Rationale:
The stock shows more upside potential than downside risk for the coming week based on technical setup and positive news catalysts.
The price of NOW is predicted to go up 4.53%, based on the high correlation periods with ARR. The similarity of these two price pattern on the periods is 96%.
NOW
ARR
Year
NOW Price Forecast($)
Potential Return(%)
2025
1,073.220
-0.050
2026
1,360.000
26.660
2027
1,500.000
39.690
2028
1,800.000
67.630
2029
1,800.000
67.120
2030
1,800.000
67.120
ServiceNow's superior product has led to rapid share gains and exceptional retention in the ITSM market. Now the company is using this strength to expand into other areas of ITOM.
The company has added additional growth drivers, including customer service and HR service delivery, which should help propel robust growth over the next five years.
GAAP operating margin was breakeven for the first time in 2019, and we see a decadelong runway for expansion.
Piper Sandler
Price Target
$1,000 → $1,200
Upside
+11.42%
Raymond James
Price Target
$1,200
Upside
+8.54%
Canaccord Genuity
Price Target
$1,000 → $1,200
Upside
+9.97%