$NOW Cup with Handle Watchlist - Updated.ServiceNow $NOW is an excellent example of the double bottom / Shake-out Plus 3 CANSLIM Style trade.
While I missed that trade, the entry would have been between $485.64 to $508.76. That would have coincided well with he Gap up on June 9th when you also had a pocket pivot volume day. Even if one would have waited to reclaim the 200 DMA it would be close to the buy range and still an outstanding entry.
However, I missed that trade and I have an unbendable rule of not chasing price.
There looks to be a new opportunity forming. $NOW has formed a Cup Formation. There seems to be a reversal or stalling candle on June 24 (Closing in the lower range). Today there was some selling with price closing once again in the lower range of the day. I am hopeful that that will continue down for another 5% to 10% over the next 4 or 5 days. If it were to do that, it would be a textbook Cup with Handle formation. (And by the way, a retest of the original entry area, also quite common, hence the shake-out of weak hands.)
I’ll be watching this next week. The proper buy point would be $558.85, just over the high of June 9th. However, I look for early entries and would buy when it breaks above the short-term downtrend line (if it performs near to how I’ve drawn the future downtrend.
I hope this helps. These are my ideas and not investing / trading advice.
