ServiceNow (NOW) shares surged in prolonged buying and selling on Wednesday after the enterprise software program supplier posted better-than-expected quarterly outcomes and issued a subscription revenue outlook that surpassed Wall Road expectations.

By Wednesday’s shut, ServiceNow shares had misplaced almost 1 / 4 of their worth for the reason that begin of the 12 months, weighed down partially by issues that the corporate’s income might take successful from the Trump administration’s efforts to rein in authorities spending.

The uncertainty surrounding Trump’s plans for tariffs can also be a priority for companies, however ServiceNow CFO Gina Mastantuono stated she’s “very assured» within the firm’s «means to navigate these quickly evolving instances,” Barron’s reported. She added that demand indicators from enterprise leaders stay sturdy.

ServiceNow shares rose greater than 10% in after-hours buying and selling to about $898.

Under, we take a better take a look at Service Now’s chart and apply technical analysis to determine essential post-earnings value ranges price watching out for.

Descending Channel Breakout

Since finishing a double top in late January, ServiceNow shares trended decrease inside a descending channel for a number of months earlier than breaking out above the sample’s higher trendline on Wednesday, setting the stage for a bullish development reversal.

Importantly, the relative strength index (RSI) confirms bullish momentum, although the indicator stays nicely under overbought ranges, giving the inventory ample room to climb.

Let’s determine three essential overhead areas on ServiceNow’s chart price watching and likewise level out an necessary support level to eye throughout pullbacks.

Essential Overhead Areas Price Watching

The primary larger stage to observe sits round $900. The shares might encounter overhead resistance on this space close to a trendline that connects a spread of comparable price action on the chart extending again to final September.

A convincing shut above this stage might gasoline a transfer to the psychological $1,000 stage. Buyers who’ve bought shares at decrease costs might search for profit-taking alternatives on this area close to the mid-February countertrend peak, an space that carefully aligns with a minor retracement within the inventory final November.

Additional shopping for might underpin a transfer as much as $1,160. This space on the chart would seemingly entice appreciable consideration close to the distinguished December and January peaks that marked the inventory’s double high.

Essential Help Degree to Eye

Lastly, a lack of upside earnings-driven momentum might see ServiceNow shares retrace to round $807. Nonetheless, traders would seemingly view this space as a high-probability entry point close to the preliminary breakout location, which additionally strains up with a number of peaks and troughs on the chart stretching again to July final 12 months.

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As of the date this text was written, the writer doesn’t personal any of the above securities.