LMND - Major Area to be watching
Hi guys. Lemonade, Inc. has caught my attention with its recent price action. This will be strictly TA based, as thats what im into.
Jumping right in. This analysis is on the Daily Timeframe. Ill probably have more charts up looking at larger timeframes and updating when i see fit for each timeframe.
So on the chart we have:
1. A green box - which is in my opinion a major consolidation area / potential buy zone for long-term investing
2. White lines - Major RESISTANCE lines
3. Orange lines - SUPPORT lines/ levels
The lines are numbered so compare explaination to number system i have
EXPLAINATION
White Resistance lines (numbers here reflect numbers on chart):
1. This is MAJOR MAJOR MACRO RESISTANCE, indicating a downtrend since our HIGHS are January 2021.
2. This was major support turned resistance dating back to March 2022.
We have been last 2-3 weeks battling these 2 major areas. It is a very crucial point in the price action of this asset, ESPECIALLY line #1. If it can confirm above these lines, we have major major trend change and a possibilty that the bottom is in for this.
We have recently however been pushed down from above. Having difficulty in keeping above these lines with major selling pressure.
OBSERVATION: In this recent price action, we had 8 days above this #1 WHite line. Compared to previous history, its the most days we've been above this line, EVER. So my opinion BULLS are fighting real hard to break this BEAR TREND of 2 years.
Orange Support lines (numbers here reflect numbers on chart):
1. Major horizontal support here, some major buying taking place, keeping us above this. Since its a daily candle we need to continue to see how price reacts.
2. Major Support trend line, dating back to December 2022. Currently reacted well, is supported by it.
#1 and 2 orange lines, we have confluence here of major support. This is a good sign atleast for now. We had a nice wick indicating buying from these 2 levels, keeping the recent uptrend from December INTACT.
#3,4,5 are the next support levels to look at, if #1 & 2 break.
If we hit #5 and or the lower aspect of green box (green line), somewhere down the near future. This could indicate a double bottom and is massively bullish.
Anything below green line would be worst case scenario but thats low probabilty fo now. And would only discuss if probabilty increased.
I also added a INDICATOR.
RSI -> So here i have 3 white lines. Keeping it short, we need to keep support on these lines, break above all of them and create new higher highs on RSI and go above the Yellow line or MA to show strength.
If we confirm above White lines #1 & 2, i will most likely enter a long as it could be a nice growth stock to add (in my opinion).
So lets see what happens.
We need to observe this, since we are in this critical time in LMND price action.
Let me know what your opinions are, if you see anything bullish. I'm not a FA guy, so also if theres any positive news i should be watching out for let me know.
Boost, COmment, Follow for more updates on LMND. Check out my other ideas in my profile.
Disclaimer: IDeas expressed here are my opinion. this is not financial advice. I am not a financial advisor. Please trade responsibily, perferably with stop losses. Thanks.
Jumping right in. This analysis is on the Daily Timeframe. Ill probably have more charts up looking at larger timeframes and updating when i see fit for each timeframe.
So on the chart we have:
1. A green box - which is in my opinion a major consolidation area / potential buy zone for long-term investing
2. White lines - Major RESISTANCE lines
3. Orange lines - SUPPORT lines/ levels
The lines are numbered so compare explaination to number system i have
EXPLAINATION
White Resistance lines (numbers here reflect numbers on chart):
1. This is MAJOR MAJOR MACRO RESISTANCE, indicating a downtrend since our HIGHS are January 2021.
2. This was major support turned resistance dating back to March 2022.
We have been last 2-3 weeks battling these 2 major areas. It is a very crucial point in the price action of this asset, ESPECIALLY line #1. If it can confirm above these lines, we have major major trend change and a possibilty that the bottom is in for this.
We have recently however been pushed down from above. Having difficulty in keeping above these lines with major selling pressure.
OBSERVATION: In this recent price action, we had 8 days above this #1 WHite line. Compared to previous history, its the most days we've been above this line, EVER. So my opinion BULLS are fighting real hard to break this BEAR TREND of 2 years.
Orange Support lines (numbers here reflect numbers on chart):
1. Major horizontal support here, some major buying taking place, keeping us above this. Since its a daily candle we need to continue to see how price reacts.
2. Major Support trend line, dating back to December 2022. Currently reacted well, is supported by it.
#1 and 2 orange lines, we have confluence here of major support. This is a good sign atleast for now. We had a nice wick indicating buying from these 2 levels, keeping the recent uptrend from December INTACT.
#3,4,5 are the next support levels to look at, if #1 & 2 break.
If we hit #5 and or the lower aspect of green box (green line), somewhere down the near future. This could indicate a double bottom and is massively bullish.
Anything below green line would be worst case scenario but thats low probabilty fo now. And would only discuss if probabilty increased.
I also added a INDICATOR.
RSI -> So here i have 3 white lines. Keeping it short, we need to keep support on these lines, break above all of them and create new higher highs on RSI and go above the Yellow line or MA to show strength.
If we confirm above White lines #1 & 2, i will most likely enter a long as it could be a nice growth stock to add (in my opinion).
So lets see what happens.
We need to observe this, since we are in this critical time in LMND price action.
Let me know what your opinions are, if you see anything bullish. I'm not a FA guy, so also if theres any positive news i should be watching out for let me know.
Boost, COmment, Follow for more updates on LMND. Check out my other ideas in my profile.
Disclaimer: IDeas expressed here are my opinion. this is not financial advice. I am not a financial advisor. Please trade responsibily, perferably with stop losses. Thanks.
Disclaimer
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