IRM unable to break through key resistance level
Iron Mountain Incorporated Common Stock REIT (IRM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IRM ended the month 8.01% higher at 28.19 after edging lower $0.06 (-0.21%) today on high volume, underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IRM as at Jul 31, 2020):
Friday's trading range has been $0.51 (1.8%), that's slightly below the last trading month's daily average range of $0.53. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IRM. Prices continued to consolidate within a tight trading range between 27.79 and 28.44 where it has been caught now for the last three trading days.
Unable to break through the key technical resistance level at 28.41 (R1), the stock closed below it after spiking up to 28.44 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 10th, IRM actually gained 0.45% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Iron Mountain. Out of 310 times, IRM closed higher 52.58% 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 53.55% with an average market move of 0.41%.