We are strictly technicians here at ChartSmarter, however when certain stocks interest us and the story behind the stock is compelling its intriguing. “Charts are a shortcut form of fundamental analysis”, quoting John J. Murphy, and CHGG has a nice narrative behind it attempting to alleviate the soaring costs of books for students. That being said below is how we technically looked at CHGG precisely in our Thursday 2/26 Game Plan.
CHGG is a name in the education space that recently came public and is higher by an impressive 21% YTD and 31% over the last one year period. We have an affinity for somewhat recent IPOs and although this is a sub $10 name it has some appeal. Its last 4 earnings reports were all well received, even the one down report losing 3.8% on 11/4 reversing to close at highs for the session. The other 3 flew by 27.4, 20.5 and 6.4% on 2/24, 8/5 and 5/2. The last earnings report broke through an 8.21 cup base pivot point taking out a very long consolidation (the base began the week ending 6/27/14). Lets look to enter here.