PayPal $PYPL has been retreating since last week after its earnings report, which actually beat estimates. Here is a summary of the earnings report from Yahoo Finance:Paypal (PYPL) Q2 Earnings Surpass EstimatesPaypal (PYPL) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 14.67%. A quarter ago, it was expected that this technology platform and digital payments company would post earnings of $0.67 per share when it actually produced earnings of $0.78, delivering a surprise of 16.42%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Paypal, which belongs to the Zacks Internet - Software industry, posted revenues of $4.30 billion for the quarter ended June 2019, missing the Zacks Consensus Estimate by 0.64%. This compares to year-ago revenues of $3.86 billion. The company has topped consensus revenue estimates two times over the last four quarters....As the article noted, the market has become accustomed to surprise earnings from PYPL. The negative reaction despite strong earnings reflect an exhausted bull market. However, this does not mean PYPL is bearish. In fact, it might still be a good name to have exposure to. I agree with many suggestions out there that this could be a buy-the-dip candidate. PYPL Daily Chart (click to enlarge) Signs of Exhaustion:- Even before the recent sell-off, we can see that the price has been rallying with thinner volume than in late 2018/early 2019.- However noticeably, the RSI failed to push to 70 in the bull run since June. It did push through 70 in the earlier bull run. This was also subtle sign that the market was losing momentum.- Finally, the sell-off came last week, and extended this week below some key support factors.- There was a support pivot at $113.65 and a rising trendline around here. Price broke both during the 7/29 session.- The RSI also fell below 40, which reflects loss of the prevailing bullish momentum.- With all these signs, we can only say that the market has shifted from bullish to consolidation. We can't say that the market is bearish yet.- Thus, I think the $105-$106 area would be a key support area, and a level where I would be targeting for a long entry.- There is not much else to consider here - PYPL has been sharply bullish, and that the $105-$106 area was a common support.- I will be looking for the RSI to dip below 30 here. In a bullish market, if the RSI dips below 30, we can say the market is oversold.