IRM closes above its opening price after recovering from early selling pressure
Iron Mountain Incorporated Common Stock REIT (IRM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IRM finished Thursday at 25.47 gaining $0.42 (1.68%), strongly underperforming the S&P 500 (6.24%). Trading up to $0.81 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 Mar 26, 2020):
Thursday's trading range has been $2.34 (9.31%), that's slightly above the last trading month's daily average range of $1.98. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably 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 bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 24.32 earlier during the day, the share bounced off the key technical support level at 24.52 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 26.91 (R1). After having been unable to move above 26.91 in the previous session, Iron Mountain ran into sellers again around the same price level today, failing to move higher than 26.66. The last time this happened on March 19th, IRM lost -9.67% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 26.91 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Iron Mountain. Out of 165 times, IRM closed higher 57.58% 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 52.73% with an average market move of 0.14%.