IRM pops to highest close since June 9th
Iron Mountain Incorporated Common Stock REIT (IRM) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, IRM finished the week 4.47% higher at 29.45 after gaining $0.36 (1.24%) today, strongly outperforming the S&P 500 (0.06%). Today's close at 29.45 marks the highest recorded closing price since June 9th. 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 Aug 07, 2020):
Friday's trading range has been $0.69 (2.37%), that's above the last trading month's daily average range of $0.56. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 White Candle.
After trading down to 29.00 earlier during the day, the share bounced off the key technical support level at 29.09 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 21st, IRM gained 0.84% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 27.88 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 29.80 where further buy stops might get activated. Trading close to June's high at 30.68 we could see further upside momentum if potential buy stops at the level get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Iron Mountain. Out of 80 times, IRM closed higher 57.50% 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 four trading days, showing a win rate of 56.25% with an average market move of 0.17%.