Education technology company Chegg Inc. (CHGG) is scheduled to report its fourth-quarter numbers after the close of trading here on Monday. Checking out Chegg's charts is our homework assignment today.
In this daily bar chart of CHGG, below, I can see lows in May/June followed by a slow creep higher to a high in early December. CHGG has corrected lower in the past two months. Prices are below the 50-day moving average line and below the 200-day line. The slopes of both of these averages are negative. The On-Balance-Volume (OBV) line has been stalled the past three months. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory but poised for a cover shorts buy signal.
In this weekly Japanese candlestick chart of CHGG, below, I fail to find a strong picture. Prices have suffered a major decline from early 2021. Trading volume does not look like it has improved, telling me CHGG has failed to attract new investor interest. The weekly OBV line shows mild improvement from May. The MACD oscillator has taken a year to get back to the zero line.
In this daily Point and Figure chart of CHGG, below, I can see a potential upside price target in the $24 area.
In this weekly Point and Figure chart of CHGG, below, I can see that prices reached a downside price target in the $23 area.
Bottom line strategy: I have no knowledge of what CHGG is going to report to shareholders this evening. The charts and indicators are largely neutral -- not a compelling buy and not looking vulnerable.
