ServiceNow (NOW) shares surged in extended trading on Wednesday after the enterprise software provider posted better-than-expected quarterly results and issued a subscription revenue outlook that surpassed Wall Street expectations.

Through Wednesday’s close, ServiceNow shares had lost nearly a quarter of their value since the start of the year, weig🅰hed down in part by concerns that the company’s revenue could take a hit from the Trump administration’s efforts to rein in government spending.

The 澳洲幸运5♌官方开奖结果体彩网:uncertainty surrounding Trump's plans for tariffs is also a concern for businesses, but ServiceNow CFO Gina Mastantuono said she's “very confident" in the company's "ability to navigate these rapidly evolving times,” Barron's reported. She added that demand signals from business leaders remain strong.

🐭🔯ServiceNow shares rose more than 10% in after-hours trading to about $898.

Below, we take a closer look at Service Now’s chart and apply 澳洲幸运5官方开奖结果体彩网:technical analysis to identify cruci🍰al post-earnings price levels🏅 worth watching out for.

Descending Channel Breakout

Since completing a 澳洲幸运5官方开奖结果体彩网:double top in late January, ServiceNow shares trended lower within a 澳洲幸运5官方开奖结果体彩网:descending channel for several months before breaking out above the pattern’s upper trendline on Wednesday, setting the stage for a bullish trend reversal.

Importantly, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) confirms bullish momentum, though the indicator remains well below 澳洲幸运5官方开奖结果体彩网:overbought levels, giving the stock ample room to climb.

Let’s identify three crucial overhead areas on ServiceNow’s chart worth watching and also point out an important 澳洲幸运5官方开奖结果体彩网:support level to eye during 澳洲幸运5官方开奖结果体彩网:pullbacks.

Crucial Overhead Areas Worth Watching

The first higher level to watch sits around $900. The shares could encounter overhead 澳洲幸运5官方开奖结果体彩网:resistance in this area near a trendline that connects a range of comparable 澳洲幸运5官方开奖结果体彩网:price action on the chart extending back to last September.

A convincing close above this level may fuel a move to the psychological $1,000 level. Investors who have purchased shares at lower prices could look for 澳洲幸运5官方开奖结果体彩网:profit-taking opportunities in this region near the mid-February 澳洲幸运5官方开奖结果体彩网:countertrend peak, an area that closely aligns with a minor 澳洲幸运5官方开奖结果体彩网:retracement in the stock last November.

Further buying could underpin a move up to $1,160. This area on the chart would likely attract considerable attention near the prominent December and January peaks that marked the stock’s double top.

Important Support Level to Eye

Finally, a loss of upside earnings-driven momentum could see ServiceNow shares retrace to around $807. However, investors would likely view this area as a high-probability 澳洲幸运5官方开奖结果体彩网:entry point near the initial breakout location♌, which also lines up with several peaks and troughs on the chart stretching back to July last year.

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As of the date this article was written, the author does not own any of the above securities.