0A91 trade ideas
Bullish Outlook on LMND: Riding the AI Hype WaveDescription:
Lemonade Inc. (LMND) is an innovative insurance technology company that has been making waves in the industry by leveraging artificial intelligence (AI) to disrupt traditional insurance models. This TradingView idea explores the bullish potential of LMND stock, fueled by the growing AI hype and the company's unique approach to insurance.
LMND has built a digital platform that utilizes AI algorithms to streamline the insurance process, offering hassle-free policies to customers. By leveraging AI capabilities, LMND aims to improve customer experience, enhance underwriting accuracy, and reduce operating costs. These factors position the company for growth and have attracted significant attention from investors.
Reasons for Bullish Sentiment:
AI-Driven Disruption: LMND's AI-powered platform is disrupting the traditional insurance landscape. By utilizing advanced algorithms, the company can provide personalized insurance policies and process claims efficiently. This unique approach differentiates LMND and positions it to capture market share as customers increasingly seek digital and AI-driven solutions.
Rapid Revenue Growth: LMND has demonstrated impressive revenue growth since its inception, driven by its expanding customer base and increased policy sales. As the company continues to innovate and gain market traction, its revenue growth potential remains strong.
Expansion into New Markets: LMND has been expanding its product offerings and entering new markets. By leveraging AI technology, the company can quickly adapt to new customer needs and penetrate untapped markets. This expansion strategy enhances LMND's growth prospects and increases its potential for long-term success.
Positive Customer Sentiment: LMND has garnered positive reviews from customers who appreciate the company's user-friendly digital platform, quick claim processing, and transparency. The strong customer sentiment positions LMND for customer acquisition and retention, contributing to its growth potential.
Market Enthusiasm for Insurtech: The broader market sentiment toward insurance technology companies, also known as insurtech, is optimistic. Investors are recognizing the potential of disruptive insurtech companies like LMND, particularly those leveraging AI. This positive industry sentiment can drive increased interest and demand for LMND stock.
Technical Analysis:
From a technical standpoint, LMND stock has shown a bullish trend in recent weeks. The stock has exhibited upward price momentum, with higher highs and higher lows. Additionally, trading volumes have been relatively strong during upward moves, indicating investor participation. Traders may consider monitoring key support and resistance levels, along with relevant chart patterns, to identify potential entry and exit points.
Risk Factors:
While the AI-driven disruption in insurance presents a significant growth opportunity for LMND, it's important to acknowledge the potential risks involved. Factors such as regulatory challenges, competition from traditional insurers and other insurtech firms, and potential technology-related issues could impact the company's growth trajectory.
Conclusion:
Lemonade Inc. (LMND) stands out as an insurtech company leveraging AI technology to disrupt the insurance industry. With its AI-driven platform, rapid revenue growth, expansion into new markets, positive customer sentiment, and overall market enthusiasm for insurtech, LMND demonstrates promising potential for upward movement. However, it is essential for traders and investors to conduct thorough research and consider the associated risks before making any investment decisions. Monitoring both the fundamental and technical aspects of LMND can provide valuable insights for capitalizing on potential opportunities presented by the AI hype wave in the insurance sector.
LMND - Update Hi guys, ive been tracking LMND since february as i noticed we were interacting with major resistance trend line that formed since its top in 2021. Just to mention its extremely hard to predict what goes on in the markets, and i was somewhat wrong in my short term prediction in my previous charts. As we made a lower low ($10.37). BUT im still long this company and my thesis in general for the longer term is still INTACT.
Remember this is strictly technical analysis ONLY. I do not go into fundamentals at all and quite frankly it works for me. I believe the charts to be the only tools needed as they help increase my probabilities of success.
Anyway lets jump in.
Firstly we start with price action. This analysis is done on the weekly timeframe. So this analysis is not for short term trading but to assess a longer term trend change.
We are currently in the process of breaking the orange downward sloping trend line i drew that began in july 2022 (notice the green arrow as well).
The candle is also a massive sized candle which is extremely bullish. BUT please note this candle has NOT yet closed. We must wait for tomorrows (friday) candle close. If we do close at these levels and we are above orange trend line. In my opinion this is extremely bullish. As this will wipe out the last 4 bearish candles. The candle also shows there was massive buying from $10.37.
We are also approaching the yellow line which is the 21 week moving average. This is crucial as for all assets, if we move above, confirm and it acts as support it signifies at the very least a couple of weeks to many weeks of movement to the UPSIDE.
We are also approaching the trend resistance downsloping trend line. THIS IS MAJOR RESISTANCE since January 2021. If we manage to get above this, in my opinion will be a big sign for LMND to have seen its bottom.
But we have to be patient. Take it week by week. We can also see prices move sideways, as bottoms take some time to formulate.
Now, as mentioned in my previous charts (posted below), i was wrong in the short-term price movements. I did not expect the drop of price to $10.37. I was expecting a move directly to the red trend line. But notice how we reactd to the white trendline, with this massive engulfing bullish candle.
ALso my thesis on the BULLISH DIVERGENCE has strengthened even more, after the drp to $10.37. And notice since we are in the weekly timeframe. The move that may ensue, if i am correct about the divergence can be a massive one.
Bullish divergence is highlighted by the white trend lines drawn in the price action and the RSI indicator.
ALso just note, at $10.37 we were down 94% from the top at $187.00.
**********Also note to take a trade, we need to wait for next week candles close and look for confirmation candle patterns printing. It is still possible for tomorrow to be a down day and it closing below the orange trend line************
NOTE also in the RSI. -> we are breaking out of the trend resistance trend line. Forming a higher high. We are also above the yellow moving average. This is bullish if we close tomorrow above these 2.
CONCLUSION:
Though i was wrong in the short term about price action, all in all it may be in a consolidation phase. A BULLISH divergence is also in play, currently with the RSI spike to the upside, might be playing out as we speak. We do have to observe the close of this current candle, as it being a weekly candle, we must wait and see what tomorrow brings. If we end of closing above $13.88 tomorrow, we must see what next week brings. Its also important to note the size of this candle, if we are bigger than the previous red candle come tomorrow, this is a good sign. It shows buying. RSI is also breaking trends and creating a higher high after 1 month. Overall things are looking good but we must exhibit patience. Next couple weeks is crucial for LMND.
Hope this helps. If you have any questions on TA, please comment. Let me know alsow hat you think. Please boost and follow if you like this content. I will be putting up more updates on LMND as well and will be closely observing since i am holding a position.
DISCLAIMER: This is NOT fiancial advise, i am NOT a financial advisor. Everything expressed in this post and all my posts are just my opinion and for my own educational purposes. When making trades, please do create & follow your own strategies. Make sure you focus on risk management and protect yourselves with stop losses.
LMND - UPDATEHi 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.
CONCLUSION:
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.
Lemonade is forming a spring bottomLemonade looks like as it has formed wyckoff spring low. As one of my favorite trade setups I entered a long position today.
Fundamentally I think that with the success of ChatGPT we could see increased interest in AI related stocks, specially in AI language models.
Lemonade (LMND): Lemonade is a provider of insurance-related services. The company is using AI to automate claims processing and underwriting, improve customer engagement, and reduce fraud.
Lemonade (LMND) could be a good use case for AI language models. The company uses AI-based chatbots and natural language processing (NLP) to automate customer interactions and claims processing. This allows customers to easily file claims and get quick responses through the company's mobile app, website or telephone.
One of the main benefits of using AI language models in insurance is that it can help automate repetitive and time-consuming tasks, such as answering customer questions and processing claims. This can not only save time and money for the company, but also improve the customer experience by providing quick and accurate responses. Additionally, by automating the claims process, Lemonade can reduce the risk of fraud, as the AI-based systems are able to detect and flag suspicious claims.
Overall, using AI language models can help Lemonade to streamline its operations, improve the customer experience and reduce costs, which could be beneficial for the company's growth and profitability.
LMND - BULLISH developmentsHi 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
LMND - Major Area to be watchingHi 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.
LMND | Rise from the Ashes | LONGLemonade, Inc. provides various insurance products in the United States and Europe. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property. The company also offers renters, homeowners, pet, car, and life insurance products, as well as landlord insurance policies. In addition, it operates as an agent for other insurance companies. The company was formerly known as Lemonade Group, Inc. and changed its name to Lemonade, Inc. Lemonade, Inc. was incorporated in 2015 and is headquartered in New York, New York.
Lemonade hanging by threadPrice is forming a bearish flag since February and is about to break down. LMND reports earnings tomorrow, this could trigger the price to break the flag, but it could push the price high as well. I have a short position, I don't think is going to report good earnings, even if it does and the market pushes the price up, it would be a good opportunity to add to my short.
Lemonade inc Fib VisualizedBulls are slightly considering to enter the market after recent drop of 50%.
Sure current price is going to attract a new wave of participants.
I'm sure the pullback growth will stop at one of the downward inclined fibs.
Hold Shift and measure % growth of the expected pullback on the actual interactive idea.
Targets must coincide with intersections.
Lemonade Inc UPDATEDI resume feeling Long-term bullish despite of another drop.
This is a company that offers homeowners and renters insurance at low premiums with instant claim handling. As the first P2P insurance, they also integrated AI into the system of the coverage and consumer interaction, making it more technologically advanced in comparison to the other companies in the same field in the long run. Therefore downtrend is not here to stay forever obviously. The lower it goes the faster the relative support zone is created.
LMND Bottomed Out?I think LMND is in a large inverse fibonacci pattern, with the lowest possible being this 618 extension. Any extension lower would put the stock into the negative, so by default, I believe the 618 is the lowest. I believe some consolidation was needed after hitting this extension because the price needed time to get around the MA on the larger time frames/MA's to flatten on the smaller time frames.. hence, the wedge we see. This week, a day candle finally cleared this wedge, and I believe we started a much smaller regular fibonacci (not inverse), that had a 786 retrace. I'm looking for a 227 extension touch of this fibonacci, and ideally, a 618 around $23. I believe the bottom of this stock (for the foreseeable future anyway), has been touched, and that the price is now in consolidation mode while working it's way up. Also, the large overall trend line from the ATH price has been cleared, and I think that is a good sign.
*Not trading advice, just personal analysis. Trade at your own risk.
Drink it down!Lemonade
Short Term
We look to Sell at 22.81 (stop at 25.17)
Preferred trade is to sell into rallies. Trades with a bearish descending triangle formation. Previous resistance located at 23.00. The medium term bias remains bullish. There is scope for mild upward pressure at the open but we look for selling interest to resist gains.
Our profit targets will be 16.20 and 15.01
Resistance: 23.00 / 30.00 / 60.00
Support: 16.20 / 10.00 / 5.00
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LMND finally ready to make some $$?A divergence is growing between smaller, high growth stocks and larger, market-moving stocks (e.g. AAPL, TSLA). Funds already largely cycled out of many smaller stocks and now the withdrawals are coming from large caps. This is the cyclical nature. This also means that there are plenty of small caps which are quite attractive at their current levels.
A quick recap on why LMND is down ~90% from it's ATH last year:
LMND had a stupidly-low gross loss premium when they IPO'd, coupled with even more ridiculous growth numbers. But, management made an oopsie by being too aggressive and not putting enough money away for claims and, given the size of the company, when the Texas freeze happened it had an outsized impact on them, running the gross loss ratio up to 120%. The ratio currently sits ~90% but needs to be b/w 70-75% for LMND to excel. It's improving, just really, really slowly.
LMND acquired MILE in an all-stock transaction, this brings a major up-sell opportunity to LMND as well as a larger market. This will undoubtedly jump start their foray into car insurance, but it comes with a big caveat: MILE, like LMKD, is also losing money hand over fist. At the end of 2021, LMND and MILE were losing a combined ~350MM/yr with a combined ~1.3B in cash (after liabilities). So they are OK in the near term, but this brings me to the final point:
LMND anticipates closing the MILE acquisition this quarter. If your maths are good like mine, that means in the next 5 weeks. Investors didn't love the acquisition, but now that its happened, there is a chance they can use that magical executive jargon and synergize , reducing redundant costs while expanding cross-sell opportunities.
LMND's growth is slowing, but it is still > 40% YoY
Ok, ok, you still think LMND is a dog with fleas. That's fine. But let's also look at the macro. The whole market has been set on fire the last few months and left to burn. But LMND has found (what appears to be) a floor in the $16-17 range, wicking down several times between March and May and getting good support to retain the $20 level even when the rest of the market has been consistently selling off.
My (very personal) take is that the shorts that moved LMND from 180 -> 20 have mostly exited the first time that LMND hit $17. The movement since then has been largely market makers who are pinning the price since overall volatility is so high (covered calls at the money are returning 5% PER WEEK for market makers).
Just today, LMND wicked the 16 month trend line, showing a build up of demand that could shoot through with a larger market movement upwards. Taking a look at the QQQ more broadly, I show that it held onto a 2 year trend line. I also think that, at least for what information is available today, stocks are over sold. While I think there is more downside to come, after seven down weeks the market will revert to its short-term mean until it gets that additional bad news.
As a purely personal opinion, LMND is ready to be bought. I have long-term conviction here in their product and in where they are heading. Even if their revenue growth continues to slow, in 2 years they'll be at ~$350MM revenue annually and the larger they get the better diversification they'll have to protect against asymmetric risk events such as the Texas Freeze. Back of the envelope math, that 350MM at a simple 5x multiple puts LMND at 1.75B, or 30% higher than where they are today. Again, IMHO, this is conservative and doesn't take into account market and up-sell growth ops from MILE.
Finally, as mentioned before, option premiums are absurd on LMND right now. Covered calls that are 10% OOTM are returning 2% per week and a great way to offset some portion of the potential downside. The hardest thing to do is to buy when everyone is scared.
LMNDEarnings coming up. Seems to be consolidating. Some good questions posted on Robinhood for earnings call; and interested in the way in which they address the questions
I do like the company. I like what they stand for, where a portion of your payments is donated. I like their idea of using AI and ML to address insurance.
How do they make money? Why is there no insider buying? It is at all time lows, even below the IPO.
I will wait to the Earnings call to play this stock.
Not financial advice. do your own dd and use your own intuition.