From SIA Charts - Originally Posted April 29th, 2025

In today’s analysis, we take a look at the SIA Computer Software sector, which has re-entered the favored zone of the SIA Sector Report, as highlighted in the attached SIA matrix position chart. Initially favored at the start of 2025, the sector briefly declined into the yellow and then the unfavored red zone before recovering back into favor, where it currently holds position #7. Also attached is the point and figure chart of the SIA Computer Software Equal Weight Index, which shows a correction from 191,000 to as low as 130,000 during the market selloff in March and April. However, the index found support along the trend line (highlighted with a green oval) and has recently completed a double top point and figure buy signal as it re-entered the favored zone. Key support levels are now at 144,884 and along trend at 128,000, while resistance may begin at 159,964, with upper resistance at 191,172.

Against this sector backdrop, we now turn to the point and figure chart of ServiceNow Inc. (NOW), which closely tracked the sector’s movement with a pullback in March and April before finding support along trend. Shares of NOW fell from $1,169 down to $727, a level that attracted buyer interest. After forming a price discovery triangle, shares broke out to the upside, completing two point and figure double tops at $818 and $868. Shares may face new resistance at $1,018—closely aligned with the psychological $1,000 level—and at the previous high of $1,192, assuming buyer demand remains strong. This technical setup is supported by a SIA SMAX score of 7 out of 10, indicating positive near-term relative strength against other asset classes, in addition to the favorable positioning of the broader sector discussed above. ServiceNow Inc. (NYSE: NOW) is a leading provider of cloud-based digital workflow solutions that help automate enterprise operations across IT, HR, customer service, and other functions. Central to its strategy is the AI-powered Now Platform, which enables organizations to streamline operations and reduce costs. By offering tools that enhance efficiency and modernization, ServiceNow has positioned itself as a critical partner in digital transformation efforts across both private and public sectors. Its strong performance in government contracts—despite budget constraints—underscores the growing demand for its solutions and the strategic value it delivers.

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