NYSE:LMND   Lemonade, Inc.
Hi guys, quick update on LMND.

Ive had my eyes on LMND for weeks now, after it was playing with its MAJOR DOWNTREND RESISTANCE LINE, indicated by red line. Which dates back to January 2021 at the highs of $186 ish.

I am currently in this trade with entries around 13.70 to 13.90. Just note to myself, i entered a little pre-maturely, as earlier this week would of been a better time to enter. But theres no crystal ball in trading and im content.

So this week we accomplished creating a bullish divergence where price action is pointed downwards with a lower low but indicators are pointed up with higher high (the more indicators showng this, the better (known as confluence)).

My target will be the re-test of the Major trend line in red. We will also need to observe whether or not we break through, if this bullish divergence will give enough momentum to be able to break the red line and CHANGE TREND. We are technically in a downtrend until the red line breaks. That will give me confidence, with confirmation i will likely add to more long term positions.

Another thing to note, it a potential double bottom formation, indicated by the red curved lines under price action and green curved lines under the bollinger bands. We've also add some price action below the lower bollinder band, which could of been solid areas to buy.

Also note that the lower band of bollinger is curving up, indicating a move to upside.

Now some developments in indicators:
STOCH RSI is crossing above the 80 level, and is maintaing bullish cross. Watch this. We want to stay above here. Any cross back down below 80 level will indicate potential momentum to downside.

MACD has had a bullish cross. Which has given the momentum of this recent 20%ish move.

RSI has spiked also to upside. I want to see it move past the white line drawn, to create a higher high.

All in all, things are playing out as thought. Lets continue to monitor price action. My target is the red line. We will have to see how it reacts, if it will have enough juice to break through and finally reverse its downtrend of 2 years.

Thank you! Hope this helped! Please boost, follow and comment! Check out my other charts on LMND and also check out my analysis on other assets as well!

DISCLAIMER: This is by no means financial advise. The ideas expressed on my posts are only my opinion and for educational purposes. When trading please do protect yourselfs by creating your own fool proof strategies and maintaining risk management with strategies & stop losses. Be safe.


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