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.

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

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

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

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MASSIVE UPTREND

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

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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.

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

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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.

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UNCHARACTERISETIC CORRECTION

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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.

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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.

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

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MAJOR TECH SELL OFF

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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.

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

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But smaller tech companies like LMND as well.

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

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

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

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

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POSSIBLE REVERSAL

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

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

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

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

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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.

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Please do your own due diligence.

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

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

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

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

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