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.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.
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