India, Jan. 22 -- CEAT Ltd, after a phase of sideways consolidation in recent sessions, has formed a rectangular channel pattern on its 2-hour chart, with a downside breakout indicating a potential bearish continuation.

The rectangular channel pattern represents a consolidation phase where price oscillates between parallel support and resistance levels. A decisive breakdown below the lower boundary signals a bearish continuation, indicating that sellers have gained control, and downside momentum may accelerate.

On Wednesday, the stock formed a lower high within the rectangular consolidation channel, before decisively breaking below the key support level of Rs 3,659 on Wednesday. The breakdown, coupled with subdued buying volumes, signal...