If a stock price that was previously in a rising trend channel suddenly enters a flat trend channel,
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A. B. C. D.B
A declining trend channel is a general pattern of price decline. A rising trend channel is a general pattern of price increase, while a flat trend channel is a pattern of price stability. Most technical analysts would keep a stock that has changed from being in a rising trend channel to a flat trend channel because of the possibility of it re-entering the rising trend channel. If the stock price breaks out on the downside, then the analysts would take that as a sign of an incipient declining trend channel, and sell the stock.