Chegg (CHGG) is an online learning service and app that offers students help in a number of ways. However, it looks like the stock needs help. The company cut its guidance and a number of sell-side firms have cut their ratings.
Let's check out the charts.
We last reviewed the charts of CHGG on November 2 and wrote that traders should, "Continue to avoid the long side of CHGG... Further losses appear likely and a low has not been made."
In the daily bar chart of CHGG, below, we can see that the shares gapped lower Tuesday morning to a new low for the long move down. Prices remain below the declining 50-day moving average line as well as below the bearish 200-day line.
The daily On-Balance-Volume (OBV) line is pointed lower and the Moving Average Convergence Divergence (MACD) oscillator is bearish.