In a channel breakdown and retest, price initially trades within a well-defined range where the upper line acts as resistance and the lower line acts as support. When the price breaks below the lower boundary of the channel, it signals a loss of buying strength and a potential trend shift toward weakness. After the breakdown, the market often moves back up to retest the broken channel support, which now acts as new resistance. If the price fails to move back inside the channel and shows rejection from this level, it confirms the breakdown and increases the probability of further downside, indicating that sellers are in control.