LendingTree's 15min chart triggers Bollinger Bands narrowing, bearish Marubozu formation.

LendingTree's 15-minute chart has recently exhibited Bollinger Bands Narrowing, accompanied by a Bearish Marubozu formation at 09/29/2022 11:00. This suggests a decrease in the magnitude of stock price fluctuations, indicating a high level of sellers' control over the market. Consequently, the bearish momentum is likely to persist.

LendingTree's (NASDAQ:TREE) 15-minute chart has recently exhibited Bollinger Bands Narrowing, accompanied by a Bearish Marubozu formation on September 29, 2022 at 11:00. This suggests a decrease in the magnitude of stock price fluctuations, indicating a high level of sellers' control over the market. Consequently, the bearish momentum is likely to persist.

Bollinger Bands Narrowing indicates a period of low volatility, where the upper and lower bands are close together. This is often seen as a sign of consolidation, where the market is waiting for a new trend to emerge. The Bearish Marubozu formation, which consists of a large red candle with no wicks, further suggests a strong bearish trend. This formation typically indicates a period of heavy selling pressure, where buyers are unable to push the price back up.

From a financial perspective, LendingTree has seen significant improvements in its revenue and margins in recent quarters. The company's insurance segment has driven this growth, with revenue up 120% in 2024 due to strong underwriting profits at carriers. However, this dynamic can reverse if insurance carriers face profitability issues or decide to cut marketing budgets. The company's capital structure has also improved, with a new $475mn credit facility replacing older debt and allowing for share repurchases and strategic investments.

Despite these improvements, LendingTree faces several challenges. The company has a significant amount of goodwill on its books, which could still have to be written down. Additionally, the company's capital allocation in prior years has delivered disappointing returns. The rebound in insurance could fade quickly if carriers cut ad spending, while any missteps in renewed "strategic" investments could revive the impairment cycle.

In conclusion, while LendingTree has shown signs of recovery, the bearish momentum in the stock's recent chart patterns suggests caution. Investors should closely monitor the company's financial health and the potential risks in its insurance and capital allocation strategies.