Chart of the Day: A Technical Look at Our Latest Portfolio Holding
Picking up ServiceNow shares after a sharp pullback serves us well.
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We added ServiceNow NOW to TheStreet Pro portfolio on June 4 after the stock made a run down to a nice support level. While there could be more downside for ServiceNow, we believe this is a good entry point into a name that is a top growth story.
Notice the candles are not in bullish mode here even as the stock made a gallant run to new highs in early April. That effort failed and ServiceNow was hit hard by sellers, taking the stock down roughly 20% from the February highs to last week's potential low.
We say "potential" only because there was a high volume alert last week when that level was achieved (arrow on the top pane). If this low from last week holds, call it $610, then we can see the stock rising at least to May's high mark of $783, but possibly much further if that objective is met (perhaps to $1,000).
Stochastics momentum looks to be turning from a low as well. The indicators still are in bearish territory but are trying to turn. We'll wait to see if that happens before adding more shares.
At the time of publication, TheStreet Pro Portfolio was long NOW.
