ServiceNow Inc. (NOW) stock presented traders with one of the most unusual trading sessions recently, culminating in a dramatic sell-off followed by a dead-flat close. This price action has created a critical inflection point, leaving investors to question whether the stock has found a bottom or is merely pausing before another drop. The opening on Monday will be crucial in setting the tone for the week.
Deconstructing Tuesday’s Bizarre Session
At first glance, the data for Tuesday, June 18th, seems uneventful, but the intraday chart tells a very different and more dramatic story.
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Misleading Close: The stock closed at
0.00 (0.00%). This is because the previous day’s close was also exactly $982.08.
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The Real Story – A Steep Sell-Off: The 0% change masks a day of significant bearish activity. As the chart shows, the stock opened much higher, likely above the $1,000 mark, and immediately began a steep descent.
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Finding a Floor: The selling pressure continued for most of the day, pushing the stock down until it hit the $982.08 level in the afternoon. At this point, the stock’s movement came to an abrupt halt, trading sideways in a very tight line into the close. This indicates that a powerful equilibrium was found, with buyers defending the $982 level just as strongly as sellers were pushing it down.
Key Levels to Watch for on Monday
The price action has established a very clear line in the sand for traders.
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The Ultimate Support Level: The price of $982.08 is now the most critical support level. This is the floor that held against the intense selling pressure. A break below this level on Monday would be a very strong bearish signal, suggesting the downtrend is set to continue.
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Key Resistance Levels:
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The first minor resistance lies in the mid-day consolidation range, roughly between $985 and $990.
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A much more significant psychological and technical resistance is the $1,000 level, near where the stock opened before its sharp decline.
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Will ServiceNow Stock Go Up or Down on Monday?
The chart presents a classic battleground scenario.
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The Bearish Case: The dominant trend of the day was overwhelmingly down. The stabilization at the end could simply be a pause as sellers regroup. If the broader market shows any weakness, expect the $982.08 support to be tested and potentially broken. The stock’s extremely high P/E ratio of 133.42 makes it vulnerable to sharp corrections on any perceived weakness.
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The Bullish Case: The fact that the stock stopped falling and found solid support is a positive sign. It implies that the sell-off may be exhausted and that value investors or dip-buyers have stepped in. If the stock can hold above $982.08 at the open and start to climb, it could signal a reversal and an attempt to recover some of Tuesday’s significant losses.
Is It the Right Time to Invest?
This is a high-stakes situation for any investor considering a move on Monday.
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For Short-Term Traders: “Catching a falling knife” is notoriously risky. Attempting to buy at the $982.08 level is a high-risk, high-reward play. A more conservative strategy would be to wait for confirmation: either a move back up above the $985 resistance to go long, or a definitive break below $982.08 to consider a short position.
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For Long-Term Investors: ServiceNow is a leader in its space, and the high valuation reflects strong growth expectations. A sharp drop like this might be seen as a long-term buying opportunity. However, given the high P/E, investors should be aware that the stock can be highly volatile and could see more downside before a true bottom is formed.
In conclusion, ServiceNow stock is precariously balanced on a knife’s edge at $982.08. The initial price action on Monday will be a critical tell. Whether this level acts as a launching pad for a rebound or a final pause before another decline will likely determine the stock’s trajectory for the rest of the week.
Disclaimer: This article is for informational purposes only and is based on the data provided in the image. It does not constitute financial advice. All investors should conduct their own research and consult with a financial professional before making any investment decisions.
