Celgene (CELG) - Get Report has been under pressure since late Tuesday. The narrow consolidation that followed the stock's powerful post-Brexit rally, which lifted shares over 25%, was unable to hold a selling wave in the middle of last week.

Celgene took out layers of support since then but is now settling in near a very low-risk buy zone. For patient investors, a very low-risk buying opportunity is developing.

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Midway through Celgene's surge off the June low, the stock stalled just below its 200-day moving average. This key long-term indicator had capped the April and June highs and appeared to be providing the same roadblock near the July high. Late in the month, Celgene began to pierce this level as volume picked up, but the stock didn't convincingly take it out until July 28. That was the spark needed to continue the rally. Celgene left behind key support on July 28. The area just below $106 provided the footing needed for the second leg.

This week, Celgene showing signs of stabilization as the $106 area comes back into play. Also in this key zone is a bullish 50-day/200-day moving average crossover. In the near term, patient Celgene bulls should consider the stock a low-risk buy between $107 and $105. If the stock can continue to regain its footing here, a fresh rally leg could take hold. On the downside, a close back below $104 would indicate last week's selloff has more room to run.

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