4S0 trade ideas
ServiceNow Inc SHORTShort from $176.08
Market Cap - $31.07B
Beta - 1.64
EPS - (0.87)
P/B - 52.48
- ServiceNow reported impressive 1Q18 results - both earnings and revenues increased YoY. However, the equity remains massively overstretched trading with a forward P/E of 55.33x.
- On top of a ridiculous forward P/E, ServiceNow is also trading with a price to book ratio of 52.48.
- The IT company faces massive competition in the non-ITSM markets by companies like salesforce.com and Oracle. Though they might have a competitive edge against their competition in the security response market - their HR and customer service solutions however face stiff competition from these companies. Non-ITSM is becoming a larger part to their revenue though the increasing competition can affect their growth. On top of this continuing losses and muted free cash flow growth is a concern.
- They have had losses over the past five years and have a deficit of $1.15bn at the end of 2017.
NeroTree Capital rates ServiceNow Inc as a SELL with a price target of $140.
NOW - Negative downward momentum short from $167.23 to $134.23NOW seems forming a negative downward momentum setup along with negative Twiggs money flow divergence. It also has Plenty of selling but mostly around 5-20%. We think it will decline from here.
To Play this August $150 Puts don’t look bad.
* Trade Criteria *
Date First Found- March 23, 2018
Pattern/Why- Negative downward momentum short
Entry Criteria- $167.23 (Hit March 23, 2018)
Exit Criteria- $134.23 or 200 day moving average.
Stop Loss Criteria- $178.23
Indicator Notes- Strong Twiggs money flow divergence
Special Note- Plenty of selling but mostly around 5-20%. August $150 Puts don’t look bad here.
Please check back for Trade updates. (Note: Trade update is little delayed here.)
$NOW ServiceNow - Expecting breakout$NOW ServiceNow - Expecting breakout of triangle pattern to the upside. Earnings approaching 04/25.
NOW - Negative downward momentum short from $167.23 to $134.23NOW seems forming a negative downward momentum setup along with negative Twiggs money flow divergence. It also has Plenty of selling but mostly around 5-20%. We think it will decline from here.
To Play this August $150 Puts don’t look bad.
* Trade Criteria *
Date First Found- March 23, 2018
Pattern/Why- Negative downward momentum short
Entry Criteria- $167.23 (Hit March 23, 2018)
Exit Criteria- $134.23 or 200 day moving average.
Stop Loss Criteria- $178.23
Indicator Notes- Strong Twiggs money flow divergence
Special Note- Plenty of selling but mostly around 5-20%. August $150 Puts don’t look bad here.
Please check back for Trade updates. (Note: Trade update is little delayed here.)
NOW - Negative downward momentum short from Now seems forming a negative downward omentum setup along with negative Twiggs money flow divergence. It also has Plenty of selling but mostly around 5-20%. We think it will decline from here.
* Trade Criteria *
Date First Found- March 23, 2018
Pattern/Why- Upward channel breakdown, smart money short setup.
Entry Criteria- $52.46
Exit Criteria- $45.57
Stop Loss Criteria- $55.88
Indicator Notes- Twiggs money flow deep into the negative side.
Special Note- BIG selling - over 750 million dollars. Could consider $60 September Puts (currently $5.30)
Please check back for Trade updates. (Note: Trade update is little delayed here.)
NOW - rising wedge & upward channel formation short Setup NOW is forming a rising wedge & upward channel formation. Both suggesting a decline & we think it can decline all the down to $65 area.
* Trade Criteria *
Date first found- March 2, 2017
Pattern/Why- Upward channel
Entry Target Criteria- current label
Exit Target Criteria- $65.33
Stop Loss Criteria- $90.23
Please check back for Trade updates. (Note: Trade update is little delayed here.)
NOW GAPThis stock has moved well on gap use the technique I taught on how to trade this gap and go, potential target around 88 from its 72 level, look at longer term options and wait for breakout of today's high or sell off and bounce.
NOW get short nowThe enterprise software company's Q2 earnings met analyst estimates, and ServiceNow raised its revenue forecast.
But ServiceNow stock was down.
Technically we had wide wedge that gave good buying opportunities with reversal candles (check my long ideas in the links below). But fow now, stock resolved its indecision pattern to downside on increasing volume. Combine it with overall market that entered into correction and that is how you get high-winning trade. I like how it holds near lows of its recent move down, while market bounced off a bit from lows - relative weakness. Plus well defined stop above $56.25, as 8 EMA is in control with target at $48.70, then $46.00 make yhis trade attractive from Risk/Reward point of view.
NOW get long now, part 2This cloud-service company looks ready for another leg higher.
Stock came from $26.33 to $71.80 for one year. Then agressively sold off from high. Pretty deep pullback to $46 which we can measure with fib levels - 61,8% is support - the last chance for bulls to prove that it is not reversal.
I was bullish on it since Reversal on 15 of May (check my thoughts in the link below). Since then, it had nice move through resistance $55-$56 right to $64.61 from where it had 4 days of selloff. It found bottom and formed support on previous resistance around $55.00-$55.60 (previous resistance). I like the way how buyers regrouped and with yesterdays candle it broke up consolidation with bullish close near intraday high.
So, buyers should hold above $58 to keep active traders attention, then we can see some follow through to the top of this wedge. It has some room to $64 and with well-defined risk below $55.60, it makes this trade attractive from Risk/Reward point of view with high probability of winning, as this market stays bullish (active, intermidiate and macro trends are still intact).
We have earnings on July 30 after market close.
NOW get long nowStock came from $26.33 to $71.80 for one year. Then agressively sold off from high. Pretty deep pullback which we can measure with fib levels - 61,8% is support - the last chance for bulls to prove that it is not reversal.
Yeasterday it went through lows but managed to get back and closed on highs. Showed us relative strength vs broad market (SPY, DIA and QQQ showed some breakout failure signals and closed around 1% down)
Despite it is below all key moving averages I have thoughts that money can rotate into underperforming stocks as many sectors are extended and markets are nervous so it is difficult to buy them.
Trade Plan:
Enter: now @ $47.82 or wait for additional confirmation brak up through consolidation resistance @ $49
Stop: below low of the day where sellers failed to hold below $46 then we have support from $44 to $45
Target: $53 swing high where 200 MA lies then we have $55
