ServiceNow Stock Analysis Ahead of Earnings: Key Technical Levels and Market Expectations

Investors are keeping a close eye on ServiceNow (NOW) stock ahead of its earnings announcement tomorrow, as technical indicators on the daily chart suggest signs of potential weakness. Currently trading at approximately $958.59 per share, ServiceNow shares are flat on the day, with a notable gap below at around $831 that could be filled if the company’s earnings disappoint.

Expectations are high, with analysts forecasting a 21% year-over-year increase in earnings per share (EPS) for the quarter. Meanwhile, the stock has gained just over 26% over the same period, potentially indicating that much of the positive outlook is already priced in. This raises the risk of increased volatility, especially if the company provides conservative guidance or signals rising costs and tariffs.

A drop to the $831 support level would represent a 14% decline, aligning with the lower boundary of the ascending trend channel—a level that could attract long-term bullish investors looking for an entry point. Conversely, a rebound from that level towards the all-time high would suggest a potential 45% upside.

From a technical standpoint, the MACD is bearish and continues to fall, while the stochastic indicator is also trending lower, which may signal near-term pressure. Nevertheless, as has often been the case during earnings season, fundamental performance can outweigh technical signals, especially if results or forward guidance beat market expectations.

In summary, ServiceNow’s Q2 earnings could act as a key catalyst. Traders and investors should watch for potential gap fills, volatility spikes, and any updates related to cost pressures or macroeconomic headwinds that might shape sentiment in the short to medium term.