Shares of PayPal (PYPL) - Get Report were in full pullback mode last week. One day after an impressive third quarter earnings report drove the stock more than 10% higher on extremely heavy trading, PayPal ran out of steam. 

After printing a new all-time high last Monday, shares began to fade. By the end of last week, a major support zone was getting a test. 

For patient investors, this healthy action is providing a low-risk entry opportunity.

Shortly after PayPal's powerful post-Brexit rally ended, the stock took a very hard hit.  This news-inspired breakdown drove shares more than 7% lower before they hit a key support level near $36.50.  Patient bulls took advantage of the dip, and by early September, PayPal had put in multiple weekly lows near this important zone. By mid-September, the stock was trading back up near its early 2016 peak and had left what now appears to be a major bottom.

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Heading into its latest earnings report, PayPal was set up for a fresh rally leg.

After last week's pullback, PayPal is once again in a very low-risk buy zone.  This area includes the stock's September high near the upper band and the May/July highs near the lower band.  Also near the lower band is PayPal's powerful Oct. 21 breakout gap. 

PayPal investors should consider the stock a buy as it stabilizes in this area.  Once the stock regains its footing, a new rally leg could be on the way.  On the downside, a close back below the $38.75 level would violate the October low, indicating a more drawn-out bottom is ahead.

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