GDS Holdings Limited (GDS)ꦏ, a leading data center provider in China, is set up for a massive rally. The stock has shed more than 30% of its value since July of last year, but a bullis💧h chart pattern signals that huge gains are about to come.

Shares of GDS Holdings are trading in a broad 澳洲幸运5开奖号码历史查询:consolidation pattern that sees a strong 澳洲幸运5开奖号码历史查询:support level hold against a falling 澳洲幸运5开奖号码历史查询:resistance level – known as a 澳洲幸运5开奖号码历史查询:descending triangle pattern.

With the key levels of support and resistance, the lines in the sand are drawn. A break above or below these ꦚkey levels would tell us that a major move in either ཧdirection is about to take place.

Triangle patterns give us clear expectat🌠ions after a breakout occurs. The move is typically equal to the height of the pattern. In this case, the height is $24 per share.

A breakout to the upside sets up a possible rally of 80% or greater, in quick fashion. However, a breakout on the downside could send GDS stock quickly below $7 per share. A $24 decline wo🤡uld wipe out the stock, but a plunge back to $7 per share would be a drop of greater than 60%.

With the stock trading right at the top of the range and most triangle patterns being 澳洲幸运5开奖号码历史查询:continuation patterns, I expect the breakout to occur to the upside.

Regardless of the direction of the breakout, there is a 100% chance that one🍬 occurs in the coming months. And that will be key in determining how to trade the stock going forward.

The Bottom Line

In sum, if you are looking at GDS Holdings ahead oꦅf the breakout, it is advisable play the upside. Triangle patterns are mostly continuation patterns🧜, and this stock has been climbing since 2017. The upward breakout signals for a potential 80% gain in the coming months.