We're seeing the exact same price setup in shares of mid-cap natural gas company Questar (STR - Get Report), even if the chart looks a little different at first glance. Like REGN, Questar is currently forming a downtrending channel, but in this case, the channel is bounded to the downside by two extra support levels. Don't expect support to provide a reprieve from selling, though the trend is clearly down from here.
STR is sitting up near trendline resistance right now, which provides an optimal time to exit a position in shares. This stock has gotten swatted down on each of the last three attempts to push through the top of the channel, and with shares slipping for a fourth time, the message is pretty clear that the trendline isn't going to break this time around either.
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Momentum (at the top of the chart) has also been held down below the 70 level over the course of this setup. Expect a momentum move above 70 to lead a change in trend in STR; it's just not happening anytime soon.