CHGG pushes through Thursday's high
Chegg Inc. (CHGG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
CHGG finished the week -2.63% lower at 64.91 after gaining $2.12 (3.38%) today, significantly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.88 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 64.26, Chegg confirmed its breakout through the prior session high after trading up to $1.73 above it intraday.
Daily Candlestick Chart (CHGG as at May 22, 2020):
Friday's trading range has been $2.64 (4.11%), that's slightly below the last trading month's daily average range of $3.37. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CHGG.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on May 14th, CHGG gained 2.08% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 67.98 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Chegg. Out of 33 times, CHGG closed higher 69.70% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.55% with an average market move of 2.57%.