IRM breaks below key technical support level
Iron Mountain Incorporated Common Stock REIT (IRM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IRM finished the week 4.12% higher at 33.14 after losing $0.22 (-0.66%) today, underperforming the S&P 500 (0.18%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IRM as at Feb 14, 2020):
Friday's trading range has been $0.66 (1.98%), that's above the last trading month's daily average range of $0.51. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IRM.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on November 19, 2019, IRM actually gained 0.32% on the following trading day.
Prices broke below the key technical support level at 33.17 (now R1), which is likely to act as resistance going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 31.95.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 33.53 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Iron Mountain. Out of 83 times, IRM closed higher 62.65% 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 51.81% with an average market move of 0.43%.