$GDS Holdings Ltd(GDS)$GDS is a company that I see a lot of promise but it appears that not many people are as enthusiastic as me. I have written about GDS a couple of times... I have recently taken a small position into the company after following it all the way down!

Think the main reason for the lukewarm reception I received from the audience when I wrote about GDS may mainly comes from unfamiliarity, or possibly China-bias, or even China-phobic. I sincerely hope it is the former rather than the latter two.

GDS, as I have explained before in other articles, deals with warehousing, or specifically data storage. GDS is simply a operators of data centre. Besides hosting data in China, it has also expanded to SE Asia. In short, GDS is in an unique position to benefit from the proliferation of internet related services (think IoT) in the future.

GDS has been on the downtrend for most part of the year. The loss accelerated in recent months. No expertise needed in chart reading will inform readers that this company is left for dead. At least that is what we can gather from the chart. GDS is expected to continue to pose loss in the near future.

In recent days, there appears to be some growing interest in the stock. There was a sharp jump in price a couple of days ago. The price has since corrected back yesterday. However, the recent volatility is also accompanied by strong take-up volume. 

Looking at the chart, the downtrend is definitely not ending but it appears that the momentum of the ffall has slowed. The RSI was reading 19 just yesterday. It has since moved up to 24. A low of around $8.4 since to have formed as its price movement tested that point twice in 3 days. The chart is also near the top of its trendline, but it would still take some effort to reverse the trend and move above the trendline.

This is a company for the future. The trend is definitely still down but there is a very good chance that a low has reached and a reversal might be in the making. It is one company and chart to look out for in the next few weeks or months.

Not sure if like what you see... Will update again if there is any interest in this company.