Lemonade (LMND) is coming out of a base

We got a question on the Lemonade (LMND), which is scheduled to report earnings this Wednesday, November 5th before market open. LMND looks bullish and is attempting to push higher from a 2022-2025 basing pattern. We highlight the key supports, resistances, and potential targets for this small cap insurance stock heading into its earnings print.

Lemonade (LMND): Holding 53.85 to 47.20 keeps focus on upside to 71 and 84

LMND has broken out from a late 2024 into mid 2025 bullish consolidation pattern that is part of a bigger base going back to early 2022. Holding the breakout zone from 54.85 to 47.25 would keep this bullish setup intact with upside potential beyond the recent highs at 60.41-62.00 to pattern counts at 71 and 85, along with the 38.2% retracement of the 2021 to 2023 decline near 78. Rising 26- and 40-week moving average near 46.87 and 41.78, respectively, reinforce this bullish setup.

On a longer-term basis, the 2022-2025 rounded bottom pattern does not rule out additional upside to the 50% and 61.8% retracements at near 99 and 120, respectively.

A basing pattern for LMND relative to the S&P 500 corroborates the bullish setup on the absolute price chart.

LMND came public in mid-2020 and has followed a classic new-issue cycle: a euphoric high in early 2021, a sharp drawdown into 2022–2023, followed by a base-building/bottoming process and current breakout phase.

Earnings this Wednesday may serve as a catalyst for continuation—or a test—of this breakout phase.

Chart 1: Lemonade (LMND) (top) and relative to the S&P 500 (bottom)