LMND Elliott Wave Analysis (21-03-21)

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If you are not familiar with Lemonade Inc. , the “Insurance” company and not the drink we are all so familiar with on a hot sunny day.

 

Then, here’s a short and quick intro to bring you up to speed.

 

Based in New York City, Lemonade Inc. offers  home owners’ insurance, renters’ insurance and pet insurance policies in the United States.

 

As well as other contents and insurance related liability policies in other parts of the world such as Germany, the Netherlands and France.

 

 

 

MASSIVE UPTREND

 

From our LMND Elliott Wave Analysis, we observed the following price action for Lemonade Inc.

 

We begin our Elliott Wave Count from the 4th of September 2020, that is why LMND’s share price was at its lowest since its IPO.

 

Since then, LMND share price has been on a massive uptrend till it hit its 52 week high at around $188.30.

 

Now, if we follow the larger degree wave count in Orange, it is quite obvious that prices has clearly peaked at the end of the Wave ((III)) in orange.

 

 

 

UNCHARACTERISETIC CORRECTION

 

I reckon that most Elliott Wave Traders will be more interested in how this Wave ((IV)) in orange will unfold before deciding whether to jump on the bandwagon.

 

Typically, during the 2 months that followed since its ATH, our LMND Elliott Wave Analysis seems to indicate that some form of a “FLAT” correction structure was in the works.

 

LMND share price was literally stuck in a “Range” during this period.

 

 

 

MAJOR TECH SELL OFF

 

And around mid February 2021, we were anticipating that LMND could well be on its way up for the completion of the last and final Wave.

 

Unfortunately, the overall “Tech-Selloff” affected not just the Big Boys like Apple, Google, Face Book etc.

 

But smaller tech companies like LMND as well.

 

Instead of the originally anticipated continuation up move, LMND share price took a massive hit together with the rest of the tech stocks.

 

What eventually unfolded was an A-B-C correction with an extended C-Leg in White.

 

With prices plunging beyond the Golden Fibonacci Retracement level of 61.8%.

 

But just shy of the next Fibonacci level of 78.6%.

 

 

 

POSSIBLE REVERSAL

 

Since then, our LMND Elliott Wave Analysis seems to indicate that LMND has made a 5-wave sequence in the lower degree.

 

Potentially signally the start of the last and final wave up.

 

Currently, LMND is in the midst of a correction in the lower degree.

 

Going forward, we are anticipating the continuation of the long awaited Wave ((V)) in orange.

 

With a possibility of making a motive 5 wave sequence that could propel LMND share price beyond its ATH as shown in the “Dotted” line in green.

 

Please do your own due diligence.

 

Trade Safe and never risk more than 1% to 2% of your account equity on any one trade.

 

For more potential trade setup suggestions on the US Stock Markets, check our Blog Posts On US Stocks.

 

Shorten your learning curve by downloading our complimentary Elliott Wave Cheat Sheets.

 

For more articles on the Elliott Wave Principle, check out our other posts in our  Elliott Wave Blog.

 

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