Earnings Snapshot: ServiceNow tops Q3 sales at $4.11B; boosts full-year FCF target to 36%
Earnings release reporting that ServiceNow recorded $4.11 billion in Q3 revenue and raised its annual free cash flow margin target to 36%.
Although the closing price of $109.67 on October 29, 2026, was below the reported support level of $128.85, the 20-day moving average remains in a bullish alignment and the RSI stands at 69.7, indicating that upward momentum remains. Therefore, we considered buying, anticipating a potential rebound near the support level.
I will take profit if the price reaches the resistance level of $159.5, and cut losses if it falls to the support level of $128.85. These two prices are the resistance and support levels suggested in the REPORTING, where a breakout of the resistance indicates upward momentum, and reaching the support level signals a risk of further decline.
RSI(14) at 69.7 (close to upward momentum but not at overbought levels), moving averages in a bullish alignment (short-, medium-, and long-term upward trends), volume at 1.18x the 20-day average (slight increase in volume), and a 7-day trailing change of +9.0% (upward price trend).
The forecast expected a modest gain of 1.5%, but the actual return missed the mark significantly at -26.9%. While there were technical bullish indicators such as the RSI and a bullish moving average alignment, we overlooked the consecutive negative news on October 29 and the fact that the stock price fell below the support level of $128.85. Consequently, the stop-loss level was not even reached, resulting in a heavy loss.
For the next trade, avoid entering below the support level and reduce position size or remain on the sidelines when negative news flow is strong. Consider real-time market sentiment alongside technical signals to set stop-loss lines more conservatively, and utilize trailing stops even before reaching price targets.