This ServiceNow Bear Signal Has Never Been Wrong

ServiceNow Inc (NYSE:NOW) stock recently rallied from its April lows, but that recovery appears to be running out of steam near the declining 320-day moving average -- a trendline with historically bearish implications. This afternoon the shares are already trading modestly lower at $138.59, but more losses could be on the way, should this bearish trendline continue its streak. Per Schaeffer's Senior Quantitative Analyst Rocky White, NOW has traded within 0.75 times the 320-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions below the trendline.