$NKE *UPDATE* –
CHART FROM 02/09/2017
CHANNEL- A channel is formed by a trend line and another line drawn parallel to the trend line 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 trend line, drawn across the highs, is a bearish resistance line. This angled trend line is most reliable when used to identify major price trends and penetration signals reversal might be coming.
Following is the chart from 1/27/2017, where developing channel is identified.