Should You Buy Chegg Inc (CHGG) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/28
CHGG is not a good buy right now for a Beginner, long-term investor with $50k–$100k who is impatient. The stock is in a clear downtrend, fundamentals are deteriorating sharply (major YoY revenue decline and ongoing losses), and there are no proprietary buy signals today. The option market is skewed to calls (speculative bullishness), but that’s not enough to outweigh the weak trend and shrinking business. Best action: avoid/new money should stay out; if already owned, sell rather than average down.
Technical Analysis
Trend is bearish. Moving averages are stacked bearishly (SMA_200 > SMA_20 > SMA_5), confirming sustained downside momentum. MACD histogram is negative (-0.00823) though contracting, which can signal downside pressure is easing but not reversing. RSI(6) at ~39.6 is weak/near oversold but not at a clear reversal level. Key levels: pivot 0.812 is overhead resistance; near-term resistance at 0.869 then 0.905. Support sits at 0.755 then 0.719—if 0.755 breaks, downside risk increases. Pattern-based projection provided also leans negative over a month (-2.58%). Overall: no technical evidence of a durable trend change.
