LMND
Ok here is Lmnd it is on the second week of the flag. I want to see it shake out to the bottom and then I will get in. Shake all the loose hands.
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INOD: I think today is the shake out day and it will start to take off. Just adding this for my thoughts. It almost hit my stop.
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I bought 10/14, thought I was late to the party but wanted to try. Good thing I wasn’t aware of HTF’s at that moment…I would have over-thought it and not bought! I just thought it was a consolidation/pullback 
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LOL great job lake. That was a beautiful time to buy it. Right before the pocket pivot on 10/16. You couldn’t have timed it better.
Edit: 11/5 and 11/20 would have been good also. I need to keep an eye on it.
Some warning signs in these charts: RKLB, LMND, SEZL, AMBA, GEO, DAVE. Decent side down days and most closing at the lows of the day. MAG-7 had some pops off 50dma, just rotation?
LMND, SEZL and DAVE are all in the fintech sector, which took a hit after JP Morgan downgraded UPST (another fintech) over valuation concerns. These names are going to be a lot more volatile than large caps, so make sure you have stop set according to their average true ranges.
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I will keep it on my watch list, would like to see some positive action first.
It looks to have resistance around $45 Pete. That is what I am playing. If it hits my stop, well than I was wrong. 
Throwing in my two-cents for discussion only, not criticizing, just trying to layout another perspective.
I assume you are trying to play off of your bottom, flat red trendline. Presuming you are anticipating this is forming support and it may be. Two touches is early for me to want to trust an area as support. Certainly will play some such, but the more touches, the stronger the support level. Here’s my take on the situation:
While it was very small and not well formed, I would approach this as a pennant or symmetrical triangle pattern. Not strong but based on the wicks, that may be what was forming. Could also see a possible flag now. Neither pattern I feel is strong. The problem with symmetrical triangles is that while they typically break in the direction of the trend they were in prior to forming, they are not as reliable to go in that direction and can easily breakout in the opposite direction, meaning down in this case. They are also strongly influenced by external market activity, such as has been suggested. Nice pickup rdutt!
Commonly, it is suggested by most TA nerds to commit to plays on patterns only after they have committed with a move in the anticipated direction. Sure you may not pickup the little gain at first, but you’ll hit fewer stop losses. But do what feels right for yourself.
I put a couple fib’s on here for general comment. The two show an overlap from 10/31 at 38.2% and 11/19 at 61.8% at around 41-42 level. Both key ratios.
My guess, while we had a spinning top candle (indecision-could move either way) we have down turning PPO and RSI, as well as external market forces likely to still push downward so I suspect it will slip slightly down. It is likely to hit 41-42, or slightly lower to touch the 21 sma, then would anticipate a return to the upside. I hope I’m wrong as full disclosure, I took a position on 11/19 when it started appearing to break the very short consolidation. I haven’t been keeping up with my stops, my older stop is at 42.75 and had meant to increase to 46.5, but it slipped through. Such is life.
Lakedog
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Thanks Lakedog, I was hoping you would chime in. But it’s 3 touches now, 
. I am not worried about it because I have put in a tight stop. But recently I have been getting stopped out when going for the breakout so I figured I would get in at the bottom of the flag.
Another way to look at LMND
Notice the first 2 blue boxes are nice and tight. #3 is a little looser. #4 is very loose.
Different feel on the weekly.
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You need to have defined rules and definitions for trading plans. IBD certainly does with very specific definitions and descriptions for many situations. TA nerds do also, just not as defined as there is no one overlord to the process (as Bill O’Neil was). One of the biggest, loosest components is defining trendlines by wicks or candle bodies. Up front: I do not have the answer. Other than I personally try to be consistent per each chart, meaning if I use wicks for the upper, I use them for the lower. Key word is ‘try’. I use the same for support and resistance when I can. Hence, I personally can’t call it 3 touches.
Two wick touches and a body touch but with a wick piercing. Does that eliminate the level as support? Heck no. Personally, I think resistance and support are zones. However, it raises the question if there is more down to go.
Part of the question is always, are we interpreting the pattern too soon? Could this be a flag early on?
Only time is going to tell. Note, since it is a downtrend, I tend to do a line for the lows and in this case using body lows (okay, blowing up the chart shows I missed the true wick/body junctions but forgive my error) and then make a duplicate line and move it up to a “best fit” level on the upper range. I do the reverse for an uptrend pattern. In this particular case, since there is a solid extra-market influence event, I typically may ignore the pattern, but just discussing here.
Will be interesting to follow this. No, I’m not buying but I have an order already poised to add or jump back in whatever the case may be. It’s at a ridiculously low limit so can just change the limit or go to market to execute. Helps me as I have no pressure to calculate how much, etc. I always feel pressure and a time crunch to place the final order. That’s when mistakes happen.
Happy hunting,
Lakedog
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Good point Lake and I think it all depends on your charts on how you will see it. IBD charts do not use wicks. But I do like the idea of zones because that is how I have been thinking about it. If it is close that is good enough. So when I say “touch” I am talking about 11/21, 12/2, and 12/3. Although 12/3 went under it and came back up past the 45 dollar mark and 12/2 didn’t quite reach it I call that good enough.
I am thinking it is an early flag but then it could be a consolidation pattern. If it doesn’t stop me out I think I am sitting at the bottom of the pattern which has been developing for 9 days. By next week we should know.
Good Point Pete but I have always been playing this as a HTF. So the weekly rules and the Daily helps get me into the trade. According to the rules it can drop down to $39.16 and the Flag will still be good. Although my stop is set at $43.32.
Looks like UPST has recovered a lot of the downgrade drop, some might see the support and bounce off the 21dma as a show of strength, but it should have been bounce during the bounce yesterday.
Had to sell $DAVE on continued decline. Moved money into $SNOW as it breaks above a flag pattern. It was fitting quite nicely in the magenta flag outline I drew a few days ago, like magic.
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INOD. OK so it looks like it came back into the Flag. What I would like to see is it drift down to 40 dollars next week on low volume and then Shoot up above the flag on High Volume on Wednesday to Friday of next week. Next week will be the Fifth week of the flag on this HTF.
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In the spirit of discussion follow through:
It gets interesting now.
- forming a channel/flag
- trying to touch the 21 sma
- trying to touch gap support
- hitting fibonacci confluences
Would I buy right now? Nope. Could easily try to fill the gap. Trying to “jump” the entry probably more often than not fails. I’m happy to “lose” a few points for a higher percentage of success. Personally, I had adjusted down my stop, just seemed an interesting stock and wanted to go for the ride. Will watch and likely add if it moves and breaks the upper channel line in the next few days. We’ll see.
Happy hunting,
Lakedog
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