India, Oct. 22 -- A descending channel is a technical chart pattern formed by drawing two parallel downward-sloping lines connecting a stock's consecutive lower highs and lower lows. It shows that the price is moving in a consistent downtrend, bouncing between the upper trendline, acting as resistance and the lower support trendline. Traders typically view this pattern as a continuation of the bearish trend; the price breakdown below the lower trendline of the pattern suggests a further bearish trend in the next trading sessions.

The above chart shows the clear formation of a descending channel chart pattern, and the price breakdown below the downward-sloping trendline is signalling the probability of a more bearish trend in the coming ...