Lemonade Falls After Q1 Earnings, Nears Key Support Level

Benzinga2021-05-13

Lemonade Inc. (NYSE:LMND) shares were falling Wednesday morning following the company’s earnings report; the insurance company reported a wider-than-expected first-quarter net loss.

Lemonade posted a first-quarter net loss of $49 million or 81 cents per share. Analysts expected the company to report a net loss of 78 cents per share per share.

The company saw total revenue of $23.5 million, exceeding Street expectations of $21.9 million.

Lemonade was down 16.7% at $61.51 at last check.

Lemonade Daily Chart Analysis

  • Lemonade shares recently broke out of what technical traders may call a descending triangle pattern and are now looking to find support at a previous area of support.
  • The stock is trading below both the 50-day moving average (green), and below the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
  • The price may find resistance near each of these moving averages in the future.

Key Lemonade Levels To Watch

  • The stock was trading in a descending triangle pattern before breaking below the support and seeing a push lower. Shares are now looking to find support near an old level where support was previously found.
  • The $60 level is an area the stock was able to hold as support in the late months of 2020. This level could hold as support again in the future.
  • After breaking below the support level of $80 in the descending triangle pattern, the stock may find resistance near $80 and struggle to cross back above this level for a time.

What’s Next For Lemonade?

Bullish technical traders would like to see the stock bounce near the $60 level and start heading back up.

Bullish traders would like to see the stock begin to form higher lows toward the $80 level before eventually breaking above it. A break may let the stock see a further upward push.

Bearish technical traders would like to see the stock fail to hold the $60 level as support. If the stock is unable to hold the $60 level, it may see a further downward push.

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