ServiceNow Stock NOW Jumps 9.85% as AI Partnerships Revive Bullish Momentum

Quick overview

ServiceNow Inc. (NYSE: NOW) closed at $98.34, up 9.85% on June 26, as investors rotated back into enterprise software names and reassessed the company’s role in the AI workflow market.

The rally followed renewed attention on ServiceNow’s AI partnerships, including expanded work with Google Cloud and HCLTech around enterprise AI agents. After a sharp year-long drawdown, the move gives NOW bulls a cleaner short-term setup, though the stock still faces heavy resistance from its medium- and long-term moving averages.

Why ServiceNow Stock Is Moving

ServiceNow has been under pressure for much of the past year as investors questioned whether traditional SaaS companies could defend pricing power against AI-native competitors. That concern hit high-growth software names broadly, not just NOW.

The latest rebound suggests sentiment may be shifting. ServiceNow is increasingly being framed as an AI workflow layer rather than a company at risk of being displaced by general-purpose AI tools. Partnerships with major cloud, IT services, and AI companies support that narrative, especially as enterprises move from AI pilots into production use cases.

According to TradingView, ServiceNow’s market capitalization stands near $101.42 billion, with fiscal-year revenue of $13.28 billion and a TTM P/E ratio of 53.25. That valuation still requires strong execution, but investors appear willing to revisit the name if AI demand translates into subscription growth.

NOW Technical Analysis: Bounce Faces a Major Test

The daily chart shows a stock attempting to recover from a deep correction, but the rebound has not yet confirmed a full trend reversal.

NOW’s RSI at 47.23 is neutral, suggesting the stock is neither overbought nor oversold after the 9.85% jump. That is constructive for bulls because the rally has not pushed momentum into overheated territory.

Short-term moving averages are improving. The 10-day EMA at $97.50 and 10-day SMA at $96.88 both flash buy signals, placing NOW just above near-term trend support.

However, the broader structure remains cautious. The stock is still below the 20-day EMA at $100.57, 20-day SMA at $106.83, 50-day EMA at $102.40, and the much higher 200-day EMA at $127.22. That cluster of sell signals means the rally must clear several resistance levels before the chart turns convincingly bullish.

The first key resistance sits around $100-$102, followed by $106-$110. A daily close above that zone could invite momentum buyers and open the door toward the Ichimoku base line near $114.29.

On the downside, initial support is near $97-$98, where the 10-day averages sit. If that breaks, traders may watch $95, then the prior weakness zone around $89-$90.

ServiceNow Price Outlook: Watch Earnings on July 29

For NOW bulls, the setup is improving but still unconfirmed. The stock has regained short-term momentum, and indicators such as Stochastic %K and Momentum are showing buy signals. Yet the MACD remains bearish, and most major moving averages continue to point lower.

That makes the next few sessions important. If ServiceNow can hold above $98 and push through $100.57, the rebound could extend toward $106.83 and $110.53. A rejection from that area would suggest the latest move is still a relief rally inside a broader downtrend.

With earnings expected on July 29, 2026, investors will be watching whether AI partnerships, Now Platform adoption, and enterprise subscription demand are translating into stronger guidance.

Bottom Line

ServiceNow’s 9.85% rally has put NOW back on traders’ radar, but the technical picture remains mixed. The stock has short-term bullish momentum, yet it still needs to reclaim the $100-$106 resistance band to confirm a stronger recovery.

For now, NOW looks like a rebound candidate rather than a confirmed breakout.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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