Shares of biotech giant Celgene (CELG) - Get Report continue to struggle ahead of this week's earnings report. The stock has been in a fairly steady downtrend since early August and at Monday's low was off nearly 17% over the last 10 weeks.

With overhead pressure growing more downside is likely ahead before a bottom can be reached. For patient CELG investors the end result will be very low-risk entry opportunities.

CELG is scheduled to report third-quarter results before the market opens on October 27.

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After the Brexit panic low, which held an important area near the early 2016 lows, CELG mounted a furious rebound. Over the next six weeks shares jumped over 25% before stalling just shy of the January 2016 peak. This impressive move pushed the stock well into overbought territory and was in need of a consolidation before returning to rally mode.

CELG did pull back but multiple layers of support were unable to hold and by late September it was clear the overhead pressure was too great for a healthy consolidation. As earnings near the stock is on the verge of erasing the entire post Brexit rally.

A continued move lower will create an entry opportunity. As shares begin to pierce the $95 level a major support zone will begin to come into play. This key area includes the stock's March and June lows near the upper band. The lower band is marked by the 2015 and the January 2016 lows.

Right in the middle, at $93.65, is CELG's 40 week moving average. This long-term indicator has not been tested since June of 2012 when shares were trading near $29. Along with a return to oversold territory a hold near the $95 to $93 area would create a better buying opportunity than currently available.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.