Three breakout charts to watch out for on Wednesday

Network 18 Media & Investments: On Tuesday, Nifty Media index gained over 14 per cent and also surged above its prior swing high, which was registered in the month of June. The stock of Network 18 Media & Investments has gained nearly 7 per cent. The stock has also given a 60-day consolidation breakout. This breakout was confirmed by the above 50-day average volume. The 50-day average volume was 17.79 lakh while today, the stock registered a total volume of 71.19 lakh. Generally, the volume criteria became significant when the stock is breaking out of the consolidation, and the stock that witnesses breakout on the back of over and above 50-week average volume, confirms the validity of the breakout. The momentum indicators are also suggesting a bullish momentum, going forward. Going ahead, the stock is likely to continue its upward momentum while on the downside, the 8-day EMA may provide support for the short-term. The 8-day EMA is currently quoting at the level of Rs 51.30.   

Igarashi Motors India: The stock has formed a bullish engulfing candlestick pattern as on August 20 and thereafter, witnessed an upward rally. After registering a high of Rs 531.80, the stock has witnessed consolidation, which resulted in the formation of a bullish pennant pattern. On Tuesday, the stock has given bullish pennant pattern breakout, indicating continuation of the bullish momentum. The pennant pole height is almost 102 points. Further, this breakout was supported by a robust volume of more than double the 50-day average volume, indicating strong buying interest by the market participants. The stock's relative strength index (RSI) has reached its highest value in the last 14 days, which is a bullish sign. Also, it has managed to close above the 60 mark after a span of almost 30 trading sessions. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the downside, the 20-day EMA level is likely to act as immediate support for the stock, which is currently placed at Rs 505.50 level. While on the upside, the level of Rs 559.80, followed by the prior high of Rs 587, will act as crucial resistance for the stock.   

Cosmo Films: On Tuesday, the stock has given a breakout of symmetrical triangle patterns on the daily chart. With this triangle breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI. This breakout was also confirmed by more than 6 times of the 50-day average volume. The big volume on the breakout implies the urgency of buying. The momentum indicators and oscillators are also portraying a bullish picture. These technical pieces of evidence indicate a strong bullish momentum. For any immediate decline, the zone of Rs 1,445-Rs 1,410 is likely to act as crucial support for the stock.