NOW Stage 3 Topping: Deep Base Signals Caution as Price Fails at 30-Week MA

Posted on by Eben@CANSLIM Research
NOW daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY — CANSLIM Research

ServiceNow (NOW) is exhibiting a Stage 3 topping pattern, with price churning around the declining 30-week moving average. The stock is forming a deep, faulty base with a 56.8% depth, which historically carries an elevated failure rate. Market sentiment is cautious and deteriorating, as the trend template fails on multiple key checks and the stock remains 28% off its high.

As of 2026-08-27 · Close $138.43

Stage 3 (Topping) — Price churning around the 30-week MA — topping consolidation (30-week MA 6-week slope: -1.23%)

⚠️ Faulty cup warning: the base is 56.8% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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