LMND trade ideas
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.
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.
Lemonade Insurance (LMND)First, let's talk about technicals. Tbh, not much support or resistance to be found since they just ipo recently. However, its a downward pennant, it might crack support go down to 48. Or bounce off and break resistance. I hope it breaks downwards so that i can buy and hold more. Why?
Fundamentals. This could possibly be the company that revolutionize one of the most distrusted industry on this planet - insurance. I love their business model and especially the CEO Daniel Schreiber himself. As a millennial myself, i absolutely abhor paper work from insurance even though i know its beneficial to have it. There's just this negative connotation tied with the current insurance market. "Scam" "Distrust" "Lies" and many more. It's not just in america but WORLDWIDE.
LMND is an innovative company that makes use of AI bots and data to generate a premium that is fairer and possibly cheaper. Claims are made and approved within seconds. And for those who understands about how AI works(i don't but i researched) the accuracy of the predictive grows exponentially as more data is being fed into the system.
Currrently LMND provides a few insurance options for clients but I'm pretty sure they will add in a few more as they grow.
Cost is going down.
Customer base are growing
A large majority of their customers are millenials. And that's their target customers.
Growing customer base.
Just a very brief summary about LMND. I love the concept and I would want to enter with a good position, averaging out bit by bit from now till january. This is a really long term hold. 10-20 years in my opinion. It could be a 10x company in that time.
Current global insurance market cap - $5.8t
As per current LMND price @ $58 a 10x stock growth would give it approximately $30b market cap.
That's just 0.5% of the current global insurance market.
Descending Triangle confirmOver the past 2 days, the descending triangle confirmed for me a reversal from the downtrend and if stock moves above 67.56 would confirm for me a bullish reversal. If this does happen, there is a gap in the 76.30 level where the stock will be trying to head towards that target over the next month or more. The MACD looks very positive in the short term which indicates a higher price for this week.
Volumes are light for this stock for now, but there will be more investors/traders learning about his stock over time and understanding how this is stock interrupts the archaic insurance business.
Short term target: 68.92
Long term gap fill: 76.30
Pro: From a fundamental standpoint, this company is growing significantly expanding their product offer: home, renter and pet insurance. Expanding in other US states and Europe.
Cons I can think of: If there is a multiple major natural disasters on an annual basis, this company may not be able to pay out to their clients.
I like this stock.
Reversal from it's previous downtrend July 24th we see it break the support line and make lower lows and highs.
From July 27th to August 3rd: we see selloffs bringing the stock down 5% every day with reducing the company's market cap by 1 billion dollars.
With yesterday and today trading, we see a reversal with a break of the downward trend channel
With earnings coming and up it may be a driving force to bring the stock up 10-15%
LMND Up or DownLemonade has been ricocheting off this clean bullish pennant since IPO. It's bound to break, and the question is: up or down? Traditionally up would be the play due to the strong uptrend pre pennant, but without proper data it is hard to say. Sentiment is strong for this innovator and financials paint a hopeful picture for the future. I'm keen to see a swift bull move for this new stock.
Don’t tell us we didn’t warn you!Here’s a Thought! 7 July, 2020, by Vladimir Rojankovski, Chief Analyst, Grand Capital
Shares of IPO Lemonade had a second strong day of trading Monday gaining almost 17% following the internet insurance broker’s launch last Wednesday. At some point Lemonade shares touched an intraday high of $96.50 but since then rolled back to $81.20. On its first trading day on the New York Stock Exchange last Thursday, Lemonade shares skyrocketed by nearly 140%. The company present itself as a disruptor in the insurance industry, but how is its rival company SelectQuote doing since its own market debut on May 21 this year?
It has plunged 12% from its peak price of $28.75 on June 16 apparently losing steam, so don’t tell us we didn’t warn you!
$LMND is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea
Lemonade is an American property and casualty insurance company offering renters and home insurance policies for homes, apartments, co-ops, and condos.
The share price is rising and gonna continue this trend today.
The demand for shares of the company still looks higher than the supply.
These and other conditions can cause a rise in the share price today.
So I opened a long position from $53,00;
take-profit — $67,50;
stop-loss — $47,50.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
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