In this daily bar chart of NOW, below, we can see that prices struggled in the $ 500- $ 520 area in June and July. Prices opened on Tuesday with a sharp downside price gap and dropped further. Prices range below the 50-day moving average line.
The daily On-Balance-Volume (OBV) line improved in May and June but became lower in early July. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line and turns to the downside.
In this weekly Japanese candlestick chart of NOW, below, we have no outlined weaknesses today. Prices are trading below the declining 40-week moving average line. When this chart is updated on Friday, we will likely see a long red (bearish) candle.
The weekly OBV line is likely to make a new low for the move down. The weekly MACD oscillator has crossed the upside for a cover shorts buy signal but this indicator is unlikely to continue improving.
In this daily Point and Figure chart of NOW, below, we can see the potential downside price target in the $ 351 area.
In this weekly Point and Figure chart of NOW, below, we can see that prices have reached a downside price target.
Bottom line strategy: The key for NOW charts going forward is whether lows remain in May.
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