ServiceNow stock could offer investors a second chance — but only by watching these key indicators.
Shares of the IT software company have been on a winning streak, peaking in December at 720.68 per share after a 77-day consolidation period that began in July last year. The stock is ranked first in the Computer Software-Enterprise Group, according to IBD Research, and holds a Composite Rating of 99.
But ServiceNow stock's upward trend was easy to miss — and harder to act on after it's happened. "I've got a lot of these stocks that I missed in early November," Chris Gessel, IBD Chief Content Officer, told Investor's Business Daily's "Investing with IBD" podcast. "They really don't give you another chance."
Audio Version Of Podcast Episode
Instead, Gessel says to watch for corrections as a chance to get into names like ServiceNow stock — or add further to an existing position. A correction is in full swing when ServiceNow stock's price re-approaches the 50-day moving average and 10-week moving averages. If the stock also sees an increase in volume, this could indicate a potential reversal worth investing in, says Gessel.
Here are two other stocks offering that blink-and-you'll-miss-it opportunity.
Uber Stock Awaits Earnings
Ride-sharing giant Uber stock is seeing shares fall from their peak, ending a climb that began after a double-bottom signal in November, according to MarketSmith. Uber stock hovered above its pivot point, hitting a 52-week high of 63.53 before falling. Uber stock is now less than 2% above its 10-week moving average. Investors are looking toward the ride-sharing company's quarterly earnings in February.
Zscaler Sees Support In Moving Averages
Zscaler stock is retreating from a high of 227.29 reached last November, with shares 6% above its 10-week moving average. The stock fell from a three-weeks-tight area, according to MarketSmith, but is currently seeing lower-than-average trading volume. However, Gessel notes the stock tends to see support when it nears the 50-day moving average, making the next return a good potential entry point.
Check out this week's podcast episode for insight into playing the pullback.
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