Some settings are difficult to trade, because the route jumps back and forth a lot, that is, it takes a detour before the goal is achieved. Then there are settings like Servicenow, where the base value is exactly the same as the one drawn.
In March, I presented this scenario and used a possible bottom $511.70 trigger. Soon thereafter, the value overcame the trigger, traded sideways for two trading days, and then rose. This week, the stock performed well within the target area of US$562.40 to US$566.70. At the same time, this price range corresponds to the price potential derived from the ground.
After the market closed yesterday, Servicenow reported the results for the first quarter of 2021. These results are impressive. Compared with the same period last year, revenue increased by 30% to USD 1.36 billion. Earnings per share even increased disproportionately by 45% to $1.52. Analysts had previously expected revenue of only 1.34 billion U.S. dollars and earnings per share of 1.34 U.S. dollars. However, one thing has a negative impact on the market: Although Servicenow signed 89 contracts with customers in the December quarter with a contract value of more than $1 million, only 53 contracts were signed in the first quarter of 2021. The share lost about 7%. Value before the market.
From a technical chart point of view, the resistance zone near $565 is difficult. The focus now is on the support area of the breakout level between $511.70 and $507.00. Buyers there must show up again, otherwise the floor activated at the beginning of the month will become history, and a sale in the direction of $462.50 may follow.
For some time, I only traded through mentors. Because that is where I analyze my basic values. Trading is very easy. Contact the broker through Guidants, assign the session TAN and start! No additional costs and a significant time saving! You can find all information about trading through Guidants here. In this case, be sure to check our new certificate model in the chart. Derivatives trading has never been easier!
| year | 2020 year | 2021e* | 2022e* |
| Sales (in billions of dollars) | 4,52 | 5,74 | 7,18 |
| Earnings per share (USD) | 4,63 | 5,45 | 7,03 |
| Profit growth | 17,71% | 28,99% | |
| KGV | 120 | 102 | 79 |
| I | 24,3 | 19,2 | 15,3 |
| Polyethylene glycol | 5,8 | 2,7 | |
| * e = expected |
ServiceNow share
(© GodmodeTrader 2021-Author: Bastian Galuschka, Acting Editor-in-Chief)
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