Chart of the Day: This Holding Is Displaying a Good Pattern to Follow
Buyers added this stock on its previous 'touch' at the McGinley Dynamic.
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We have been waiting for a dip in the shares of ServiceNow NOW and NOW is the time for us to get busy. The recent pullback from highs was on moderate volume, but frankly this stock is simply a victim of the overall market weakness. December was a scorcher for most tech stocks and ServiceNow was not spared any grace.
As the stock has gently fallen to reliable support at the 14-period McGinley Dynamic, we notice previous times that moving average held firm and buyers came in to buy the stock. Why not one more time, this is a good pattern to follow.
The indicators are not bullish, but are pretty much oversold. That is not a reason to buy, but the candles are now teal, which is cautiously bullish. While the indicators are not saying buy, we always defer to the price chart as dominant, so we take our important cues from this. Pullbacks should be bought, that is the message of the chart.
We like ServiceNow and rate it a Two in TheStreet Pro Portfolio, or "stockpile on pullbacks."
At the time of publication, TheStreet Pro Portfolio was long NOW.
