LMND trade ideas
LMND ready for another ridiculous run up- Inverted Head an Shoulders is forming on the 1hr chart into strong resistance
- Close above psychological $50 level is encouraging of a reversal
- Need to see a few more candles to confirm a reversal
Fell back for consolidationI like this name a lot and after giving up its recent breakout, provides another buying opportunity. Needs over the purple fib to clear some resistance levels.
LMND primary direction still down, target 56LMND good retracement, still needs some more room to correct, targeting 52-56 range. Copyright Rohan Karunaratne 2020
Potential IPO base $LMNDPotential IPO base
"90 seconds to get insured. 3 minutes to get paid"
If you haven't already noticed, we are living in a world of immediate gratification. Insurance is just another sector that's ripe to be disrupted by better efficiency.
TA,
- Increasing volume and consolidating at previous highs $69.
FA,
- Disrupting the archaic industry of insurance
-High NPS score of 70. Industry average is 70.
- $5 Trillion TAM. Current market cap is $3.8Bn
- Huge barrier between insurance companies and customers. Making claims is a headache. Lemonade is bridging that gap through better customer service by leveraging the powers of AI. AI JIM and AI MAYA
- +167% revenue growth 2020
- Expansion beyond US. France is next by end of 2020.
- Only 3 types available still. Renters, home and pet insurance. More potential for other types
Concerns,
- Still not fully convinced of the business model
-Continued losses(side effect of disrupting)
- Price discovery phase still so will be super volatile.
Entry : Break of 69.2
Stop loss: 62.2
The bottom seems to be in with upside aheadAnother play similar to $ZI that had a disappointing response following IPO, seems to have found a bottom, consolidated, and wants higher. Strong long-term prospects, leaps or other long-dated calls taken from this point should treat you well.
LMND target 51, overbought to oversold playWe called out LMND earlier in the month around 49, healthy run to 60, looking for a retrace to around 50-51. Copyright Rohan Karunaratne 2020
Bottom in? Quick reversal might come soon.I believe that the odds are good for a reversal at this point, see notes on chart.
This is my personal opinion, happy trading.
LMND converging ascending triangle, target 52LMND rubber banding within trading range. No clear picture right now on a "investment" trade, so in my opinion, if you are going to trade this, try to keep it to 1-2 days. Support at the bottom of the triangle should provide and good entry, and maybe an exit around 52 would be a good profit. These are just my thoughts, please do not blindly follow without educating yourself on the markets. Copyright Rohan Karunaratne 2020
bearflag/ Head and shoulders. Lower levels likely.Looks like the wedge break out did not have enough bear follow through, so its likely to go lower. If we take the height of the head and the pole of the flag the downside may be about 36-37 where that downward sloping trendline is. I did not start a position yet but as can pay off to be patient before wanting to jump into these kinds of companies. if bulls are strong enough it could also retest the outside of the wedge and go up however I we would have to wait for confirmation.
LMND good hold of support at around 50, looking for target 54-55LMND holding support just around the bottom of the trend line, looking for run in the coming week to around 54 or 55 ish. Copyright Rohan Karunaratne 2020
LMND potential move to 56, testing trend line supportLemonade made first bounce off trend line, potential move to 56 based on previous resistance, and trend line high. Copyright Rohan Karunaratne 2020
Lemonade breakout of descending wedgeAdam and Eve bottom
Time for up.
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. It also provides personnel, facilities, and services to each of its subsidiaries.
Watching for a reversalLMND looks bearish here and may be heading back down to the support of the 0 fib below. As it becomes oversold it may provide a prime opportunity for a bounce entry, although safer would be entry at fibs above.
Bullish wedge formingI'm sure many are excited for this company as it has very innovative ideas.
But as traders we still need to be picky with how we enter into a stock to limit the downsides. Waiting for this set up may lead to a missed opportunity but at least no money was lost.
Several ways to enter is either play the break of the wedge or try to catch the bottom of the wedge and hope it breaks.
I like to do the latter personally as I am never fond of playing the breakouts.
what I drew are 2 scenarios we should look for
1) a double bottom inside the wedge leading to a break with a very obvious bullish divergence
2) touching the bottom trendline and looking for signs of bullish divergence and more signs of "micro" bullish divergence if we were to zoom in on a 15 min tf. SL should be placed on the previous low at the time but still fairly tight. This is something to keep in the back burner.
LMND on My MindShorting LMND might just pay for the policy I'll eventually get from them. I love the idea of this company, but another 7% drop is coming imo. Trade on your own research!
