IRM closes above its opening price after recovering from early selling pressure
Iron Mountain Incorporated Common Stock REIT (IRM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, IRM finished the week 7.81% higher at 24.17 after gaining $0.24 (1.0%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.19 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 24.13, the market confirmed its breakout through the prior session high after trading up to $0.08 above it intraday.
Daily Candlestick Chart (IRM as at May 22, 2020):
Friday's trading range has been $0.49 (2.05%), that's far below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IRM. Prices continued to consolidate within a tight trading range between 23.13 and 24.34 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 24.34 (R1). After having been unable to move above 24.13 in the previous session, Iron Mountain ran into sellers again around the same price level today, missing to move higher than 24.21. The last time this happened on Tuesday, IRM actually gained 1.79% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 24.34 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 23.56 where further sell stops might get triggered. As prices are trading close to May's high at 25.66, upside momentum could speed up should the share mark new highs for the month.
Among the 10 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 167 times, IRM closed higher 56.89% 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 52.69% with an average market move of 0.18%.