Iron Mountain Inc is setting up nicely for a breakout.

Our stock screener has spotted Iron Mountain Inc (NYSE:IRM) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:IRM.

Technical analysis of NYSE:IRM

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, IRM scores 8 out of 10 in our technical rating. In the last year, IRM was one of the better performers, but we do observe some doubts in the very recent evolution.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that IRM is one of the better performing stocks in the market, outperforming 88% of all stocks. We also observe that the gains produced by IRM over the past year are nicely spread over this period.
• IRM is one of the better performing stocks in the Equity Real Estate Investment Trusts (REITs) industry, it outperforms 89% of 225 stocks in the same industry.
• IRM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so IRM is lagging the market slightly.
• In the last month IRM has a been trading in the 44.74 - 49.40 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

How do we evaluate the setup for NYSE:IRM?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:IRM this score is currently 9:

Besides having an excellent technical rating, IRM also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 49.39. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 45.91, a stop order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:IRM be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:IRM and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

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