Lodha stock tests 'Head & Shoulders' neckline support; check downside risk

Lodha (Macrotech Developers) stock is seen trading close to the neckline support of the 'Head and Shoulders' pattern on the charts, indicating crucial support around ₹1,365 levels.

Macrotech Developers (Lodha) stock price has declined by 10 per cent from its June high of ₹1,531. In the process, the stock is now seen testing support around the 'Head & Shoulders' neckline on the chart.  The daily chart shows that Lodha stock has already dipped below the upper neckline support, which stood around ₹1,420 levels, and is now seen testing the broader neckline support, which stands around ₹1,365 levels.  Technically, a breakdown from the 'Headers & Shoulders' pattern is considered a bearish (negative) development for the stock, indicating a likely bearish reversal.  Here's a likely outlook on Lodha stock as it trades near the crucial neckline support. 

Macrotech Developers (Lodha)

Current Price: ₹1,378  Likely Target: ₹1,199  Downside Risk: 13%  Support: ₹1,289; ₹1,275  Resistance: ₹1,420; ₹1,448  In general, a downward breakout from the neckline support of the existing 'Head & Shoulders' pattern indicates a potential downside risk up to difference between the head and the neckline; which indicates a likely downside target of ₹1,199 for Lodha.  ALSO READ | CDSL stock eyes 'cup and handle' pattern breakout; can it hit ₹3,000-mark?  At present, the stock has already witnessed a downward breakout as per the super trend line indicator, and is also seen trading consistently below the 20-Day Moving Average (20-DMA), which stands at ₹1,448 levels, and is likely to act as a short-term hurdle along with ₹1,420 levels.  The daily chart shows presence of interim support around the longer-term moving averages, the 100-DMA and 200-DMA, which are placed at ₹1,289 and ₹1,275, respectively.