Chart of the Week: Lemonade
Hey good morning everybody. Happy Wednesday. It’s time for our chart of the week, and this week we’re gonna focus in on insurance company name Lemonade; LMND is the symbol. Let’s take a look at this chart. It’s been pretty bullish for the past several months.
So take a look at the – from the lows that were made back in April, the stock has made a nice series of higher highs, higher lows. Our textbook definition of an uptrend, right?
And more recently, we’ve had some good strong volume trends on some positive market days. So what does that mean? Take a look at this day right here and then you can look at this day right here following earnings. And both those days, high volume moves with the price breaking out is absolutely, 100%, unequivocally bullish. I can’t express that any clearer than that.
So after this big move up here in August, we saw this stock just kind of go sideways for a little bit and built out a range here from about the low $50s – $52 all the way down to $47. Kind of went sideways for a little bit, consolidated, and recently broke out above that range and now it’s continuing to move up.
Now, I like the potential for some continuation here. Relative strength is strong. On-balance volume is just fantastic over here.
And we also see an increase in the bottom here, which is the ATR, which is the average true range. What does that mean? That means that the stock is exhibiting a lot more volatility right now, which means that the stock can really move higher.
If the bulls continue to push and press this stock upwards, I think the stock, sitting there at $78, has a good change to get to $100, $95-100.
MACD has been on a buy signal, which it’s been on since the latter part of October.
But I do like Lemonade over here. Even on the pullbacks, the stock is probably a good buy.
So take a look at LMND – Lemonade. Thanks so much for watching everyone and I’ll see you guys next time.
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