ServiceNow (NOW): The "Wait-and-Strike" Support BounceServiceNow, Inc.BATS:NOWvf_investmentHi traders, The Setup: Corrective Pullback to Value The stock has experienced a sharp decline from its 52-week highs ($211.48), losing roughly 50% of its value. You are identifying a classic re-accumulation setup at a major structural floor. The Logic: Buying now at ~$101 is risky because the price is mid-range. We are waiting for a final "flush" into the green/yellow support zone to catch the bottom of the current corrective wave. The Divergence: You are looking for the RSI (14) to show a bullish divergence. Specifically, we want to see price hit a Lower Low (entering the $80 range) while the RSI stays above its previous trough, signaling that selling pressure is drying up. For this ServiceNow (NOW) setup, we are leaning into the "patience is a virtue" approach. Since the current price of $101.74 is effectively "no man's land," we are looking for a final capitulation move into the major liquidity zone to maximize our risk-to-reward ratio. Here are the execution parameters for the trade: The Entry Strategy Wait for a decisive dip into the $81.00 to $85.00 range. This zone aligns with your green support line and the psychological floor of the 52-week low. Ideally, you want to see the price "wick" into this area while the RSI stays higher than its previous low, confirming the bullish divergence you're looking for. Risk Management (Stop Loss) The protective stop should be placed at $76.50. This level is situated just below the red "danger zone" on your chart. A weekly close below this price would invalidate the thesis, suggesting that the stock has entered a deeper structural breakdown rather than a simple correction. Take Profit Targets Primary Target: $124.00. This is your red resistance line. It’s the first major hurdle where previous support flipped to resistance. Locking in a significant portion of the position here is wise. Secondary Target: $170.00. This represents a return to the broader value area and the upper nodes of the previous consolidation. The Risk-Reward Profile By entering near $82.50, you are risking approximately $6.00 to potentially gain $41.50 (to the first target). This yields a massive 1:7 Risk-to-Reward ratio, which is exactly why waiting for this specific pullback is more professional than chasing the current price.