GDS Holdings Ltd (NASDAQ: GDS)

GDS Holdings Ltd. develops and operates data centers in China. Its facilities are strategically located in China’s primary economic hubs where demand for high-performance data center services is concentrated. 

Take a look at the 1-year chart of GDS (NASDAQ: GDS) below with added notations:

1-year chart of GDS (NASDAQ: GDS)

GDS had been trending higher since last year, but the stock eventually got stalled at $65 by the bear market. The stock rallied back and has since hit that same $65 (red) two more times. A solid close above that $65, 52-week high resistance should lead to another leg higher for GDS.

The Tale of the Tape: GDS has a 52-week resistance at $65. The possible long position on the stock would be on a breakout above that level with a stop placed under it.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT