CHANNEL- A channel is formed by a trendline and another line drawn parallel to the trendline surrounding a continuous price move. Main purpose of channel is to define the volatility of the price move and indicate breakouts and hence clear entry points. In the chart shown below, we can see that $NKE has been moving in a channel for some time. Coincidentally, there is another important technical signal in sight. A penetration of long standing Bearish Resistance Line. The downward trendline, drawn across the highs, is a bearish resistance line. This angled trendlines is most reliable when used to identify major price trends and penetration signals reversal might be coming.
Price Target after channel breakout often depends upon the length&width of the channel. In this case projected price target range is $62-$65.
Following is the chart from 1/27/2017, where developing channel is identified.