ServiceNow (NOW) collapses on earnings, here is the massive buy level

Shares of ServiceNow (NOW) are falling 10% in early trading following the company’s latest earnings report. EPS came in line with estimates at $0.97, alongside revenue of $3.77 billion (which also slightly beat forecasts).

However, investors are running for cover as forward guidance signals margin compression and rising AI software concerns.

Based on the technicals, there is an epic multi-factor support zone at $71-$68 per share. This aligns with a major trendline pivot low from 2022-2023, which also serves as the head of a sharply declining wedge pattern.

While the stock is currently trading near $90, as a swing trader, I must note that the broader stock market is at all-time highs. If sentiment shifts even slightly and the S&P 500 drops 10%, that macro pullback could easily be the catalyst that pushes ServiceNow down to that $71-$68 target.

Discipline is everything when it comes to trading. I am going to sit on the sidelines with ServiceNow and wait patiently to see if price action comes down to my major support level.