Lemonade, Inc.Long
LMND - BULLISH developments
Hi guys. Been keeping an eye on LMND last couple weeks as it was interacting with a major downward sloping resistance line dating back from its TOP in 2021. Shown by the red sloping trend line.
This is on the Daily timeframe.
I will interpret 2 things:
1. Price action
2. Indicators
Firstly, price action seems to have bounced beautifully off the 12.81 low. TOdays candle particularly is extremely bullish engulfing with a lower wick. If we close like this, it screams bullish in my opinion. On top of that with the previous 12.81 low, we are now setting up a potential double bottom. This is also bullish.
Also note the bollinger band (BB), how fridays candle we wicked below this. Usually this is a great area to pick assets up. Especially when a higher low is expressed with the lower bands of BB.
Now note the indicators:
RSI is forming a bullish divergence, where indicator forms higher lows (pointing upward) acting inversely with price action which is normally forming lower lows (pointing downward), but in this case its sideways or flat. So a atypical divergence but divergence never the less.
Stoch RSI is also below the 20 level but has crossed bullish. Expect it to cross above 20 level which would be confirmation. But generally with other signs that scream bullish i do like this to be below 20 level in some instances.
ALso notice the MACD, it seems like with the small sized red rectangles of histogram that bearish momentum is weaning off and potential bullish momentum cross is likely to occur soon.
Conclusion: Things are shaping up for this to be a nice swing trade. With a potential double bottom and bullish divergence, on top of bullish crosses in both STOCH RSI and MACD.
I have taken a swing position with stop loss below the Red support line of 12.81.
PLease let me know what you think. Please boost, comment or follow for more TA analysis.
DISCLAIMER: This is not financial advice. This is for educational purposes and to express my ideas for improving my skills. Please when trading you establish your very own strategy with risk management in mind especially utilizing stop losses and other means. Thanks
This is on the Daily timeframe.
I will interpret 2 things:
1. Price action
2. Indicators
Firstly, price action seems to have bounced beautifully off the 12.81 low. TOdays candle particularly is extremely bullish engulfing with a lower wick. If we close like this, it screams bullish in my opinion. On top of that with the previous 12.81 low, we are now setting up a potential double bottom. This is also bullish.
Also note the bollinger band (BB), how fridays candle we wicked below this. Usually this is a great area to pick assets up. Especially when a higher low is expressed with the lower bands of BB.
Now note the indicators:
RSI is forming a bullish divergence, where indicator forms higher lows (pointing upward) acting inversely with price action which is normally forming lower lows (pointing downward), but in this case its sideways or flat. So a atypical divergence but divergence never the less.
Stoch RSI is also below the 20 level but has crossed bullish. Expect it to cross above 20 level which would be confirmation. But generally with other signs that scream bullish i do like this to be below 20 level in some instances.
ALso notice the MACD, it seems like with the small sized red rectangles of histogram that bearish momentum is weaning off and potential bullish momentum cross is likely to occur soon.
Conclusion: Things are shaping up for this to be a nice swing trade. With a potential double bottom and bullish divergence, on top of bullish crosses in both STOCH RSI and MACD.
I have taken a swing position with stop loss below the Red support line of 12.81.
PLease let me know what you think. Please boost, comment or follow for more TA analysis.
DISCLAIMER: This is not financial advice. This is for educational purposes and to express my ideas for improving my skills. Please when trading you establish your very own strategy with risk management in mind especially utilizing stop losses and other means. Thanks
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