Chegg Inc (CHGG) is a leading provider of digital products and services, print textbooks and e-textbooks to students via its online platforms. The stock peaked out on February 16, 2021 at $115.21 a share. Since that pivot top, the stock price has declined sharply and is currently trading around $83.31 a share. At this time, the stock is still trading above the important 200-day moving average which is at $81.40. This moving average is no longer major chart support, so a close below this key level will likely signal further downside in the shares.
The next major support level for Chegg Inc (CHGG) will be around the $67.50 area. This level was where Chegg Inc (CHGG) stock was defended in November 2020 before trading to new all time highs. Often, when a stock trades down to a major pivot such as this it will be bought and defended again by the institutional traders. This key support area is also a major retrace level adding to the support area when tested.
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