CHGG rises to highest close ever
Chegg Inc. (CHGG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CHGG finished the month 20.38% higher at 80.97 after gaining $2.51 (3.2%) today, significantly outperforming the S&P 500 (0.77%). Today's close at 80.97 marks the highest recorded closing price ever. Trading up to $1.62 lower after the open, Chegg managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, CHGG gained 4.63% on the following trading day. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CHGG as at Jul 31, 2020):
Friday's trading range has been $2.64 (3.3%), that's slightly below the last trading month's daily average range of $3.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CHGG.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 73.84.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Chegg. Out of 111 times, CHGG closed higher 54.05% 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 58.56% with an average market move of 2.18%.