IRM closes higher for the 2nd day in a row
Iron Mountain Incorporated Common Stock REIT (IRM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IRM ended Wednesday at 29.32 gaining $0.25 (0.86%), significantly outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $0.65 (2.24%), that's above the last trading month's daily average range of $0.55. 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.
Prices are trading close to the key technical resistance level at 29.73 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 30.01. The last time this happened on May 7th, IRM gained 0.08% on the following trading day.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 28.76 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Iron Mountain. Out of 311 times, IRM closed higher 54.98% 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 53.38% with an average market move of 0.43%.