IRM falls to lowest close since July 24th
Iron Mountain Incorporated Common Stock REIT (IRM) Technical Analysis Report for Sep 21, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, IRM finished Monday at 27.27 tanking $1.06 (-3.74%) on high volume, significantly underperforming the S&P 500 (-1.16%). This is the biggest single-day loss in over two months. Today's close at 27.27 marks the lowest recorded closing price since July 24th.
Daily Candlestick Chart (IRM as at Sep 21, 2020):
Monday's trading range has been $1.06 (3.8%), that's far above the last trading month's daily average range of $0.61. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for IRM.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 18th, IRM lost -3.74% on the following trading day.
Prices are trading close to the key technical support level at 26.83 (S1). The market closed below the 100-day moving average at 27.36 for the first time since July 9th.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 29.72.
Although Iron Mountain is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Its common bearish interpretation has been confirmed for Iron Mountain. Out of 61 times, IRM closed lower 55.74% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 63.93% with an average market move of -1.74%.