TradeTheTrends

LMND, REVERSAL!

Long
NYSE:LMND   Lemonade, Inc
Hello fellow traders and investors, here's another trade idea.
LMND has recently pulled back to the support area , if LMND makes a recovery to the take profit area it offers around a 20% ROI .

Technicals:
The Macd indicates that it's oversold and in an uptrend
The RSI is oversold

When To Buy:
Now

When To Sell:
I recommend selling in the take profit area.

Fundamentals: Lemonade , Inc. is an insurance holding company, which engages in the provision of home and renters insurance services. The firm also acts as an insurance agent that offers underwriting and claims services through its subsidiary. LMND has a P/S of 70.5 which indicates that LMND's valuation is overpriced, of course, they have a debt/equity of 0 since they are an insurance company, sales growth of -70% Q/Q, Earnings per share growth of 76% Q/Q and finally an ROI of -22%. Fundamentals aren't great except for the 0 debt/equity they have and the EPS growth Q/Q.

Rating: 75/100 the technicals are very good but the fundamentals aren't great however LMND is so oversold that I personally can't see it going lower than 80$.

Note: I might buy some shares.

I hope you enjoyed this quick analysis and many more to come.
If you enjoyed leave a like, follow, comment your thoughts and share this trade idea.
Thanks.

Comments

this turned into a pile of shit today. what a disappointment
+1 Reply
@BrianClow It just broke out to the downside so I think it’s most likely heading lower
+1 Reply
thank you for this! it touched $80 and change today with pretty low volume. In fact volume has been slowly declining. I see it breaking back up to $94-$95 again, but not sure it will breakthrough the resistance unless earnings are bonkers.
Reply
Technically it is 4 touches to the bottom support and 3 touches to the top resistance. More chances of it breaking the lower support. The only good thing there is no volume currently for that move else 60 is imminent. But if it goes up with high volume, it may break the resistance this time. Market currently shorting all high p/e stocks.
Reply
TradeTheTrends chinmayamahapatra
@chinmayamahapatra, Ya that's why I close my long position at 95$ last week and indeed it's been a pretty terrible month for higher valuation stocks.
Reply
What stocks are currently on your watchlist?
Reply
Do you think LMND is a good buy?
Reply
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