How is Jim Cramer feeling about Chegg Inc. (CHGG) ?
"Chegg is terrific. I'm sticking with it," said Cramer during the Lightning Round of his "Mad Money" program Tuesday night.
Chegg is an online education services company, but let's check out the charts, instead of the fundamentals.
In this daily bar chart of CHGG, below, we can see that prices have been in an uptrend the past 10 months. CHGG is above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has been rising the past year, but it has weakened a little in July. The Moving Average Convergence Divergence (MACD) oscillator is pointed down from early July and is in a take-profits mode.
In this weekly bar chart of CHGG, below, we see a bullish picture. Prices are up significantly. CHGG is above the rising 40-week moving average line and the MACD oscillator has turned upwards to a fresh outright buy signal.
In this Point and Figure chart of CHGG, below, we can can see a projected downside price target of $39. That price would put CHGG in the upper half a four month support area, or consolidation pattern.
Bottom line strategy: The weekly chart of CHGG is bullish with no hints of distribution, but the daily chart suggests we could see some sideways to slightly lower price action with $39 the Point and Figure target.