ServiceNow fundamentals are improving and business growth is projected through 2027; a bull case exists if the recent price reversal sustains.

But let's talk about "Service Now". You have another name in the software sector among the top three companies today. What do you see in "Service Now", Dan? There's another feature there too, Marley, but it's pretty much an "NNN" feature today, isn't it?

Yes , "ServiceNow" is definitely another name in software as you pointed out, and I think it's regaining its balance as well. And again, in the long run, this is a situation where I think you will continue to see their business line continue to grow until 2027.

So, I think there is an opportunity here to capture more gains if we see this reversal continue.

Good. So, a completely different graph here, Rick, where we're looking at ServiceNow under much more pressure for most of the past year and especially recently . So, take us through what you see in the technical analysis.

Yes, we have seen a good rise since our earnings event on July 22. But, to be clear, the stock is down about 30% from its yearly highs near 193. So, we recently headed higher here , but that trend has broken.

Our blue trend line has been broken . Now, the dominant shape is the " falling wedge" pattern, where the boundary lines point downwards but converge towards each other. And, seemingly illogically, this is often seen as a more optimistic pattern.

But what you're really looking for is a breakout beyond either of these lines to break a significant technical zone, which could —depending on your expected direction—lead to a price surge where you see this kind of wild rally.

Therefore, we can note that the old peak at 142 and 150 also represents a prominent area in the upward trend. A gap was filled and then became a recurring floor around 142, or sorry, 135 also protrudes.

There is also the 126 level, which is another gap level that must be taken into account. Now, the moving averages are giving us a completely different picture once again, but we have a point of convergence between the 5- and 21- day moving averages at approximately the 134-135 level.

Our 251-day long-term exponential moving average in orange, which represents one year, is at approximately 130, which is in line with our lower boundary line and stands out as a support area once again.

The Relative Strength Index (RSI ) is slightly above the 50 midline here. The downtrend line is still in place, but we seem to be holding on to this confluence of support for our moving averages.

Therefore, watch to see if buyers are able to assert their dominance, break through the downtrend line with conviction, and achieve new relative highs. Now, the trading volume profile shows us that most of the intense trading activity was at much lower levels here.

The most important areas are close to our current level. Here, between about 123 and 126 stands out as an important area. There is another area around 135. And some isolated pockets here, from 152 to 157 and about 160 to 165.

Okay. And now we are at 135.45 for "Service Now".

So, Dan, what 's your proposed deal for ServiceNow? Yes, the price has dropped a little since I looked at this chart a little while ago, however, the idea is as Rick pointed out , I see support at 130 as well.

Therefore, today's trade example is " risk reversal". Again, this is in November, about 50 days later, and it involves selling a call option at 130 and buying a put option at 150.

That was at roughly the same cost at 138.5. Now, it can perhaps be executed against a credit balance. This lowers the breakeven point to below 130. But for me, I think if we see some weakness over the next month or so and the price closes below 130 , it's not a bad level to buy the stock.

If there is further upside and we see this reversal continue, this trading example should allow us to take advantage of it.

Good. Shares of ServiceNow also rose by one percent today, posting modest gains in line with the software sector as a whole.