GDS breaks back below 50-day moving average
GDS Holdings Limited (GDS) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
GDS finished Thursday at 56.09 losing $0.95 (-1.67%) on high volume, significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GDS as at Mar 26, 2020):
Thursday's trading range has been $5.49 (10.07%), that's above the last trading month's daily average range of $4.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GDS.
After trading down to 53.25 earlier during the day, GDS Holdings bounced off the key technical support level at 53.57 (S1). The failure to close below the support could increase that levels importance as support going forward. The market closed back below the 50-day moving average at 56.17. After having been unable to move lower than 53.67 in the previous session, the share found buyers again around the same price level today at 53.25. The last time this happened on Monday, GDS gained 6.70% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 59.00 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for GDS Holdings. Out of 244 times, GDS closed higher 49.59% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.34% with an average market move of 2.70%.