Iron Mountain Drops 3.11% As Bearish Technicals Signal Further Downside

In the most recent session, Iron Mountain (IRM) declined 3.11% to close at $89.46, with trading activity of approximately 1.77 million shares. This movement occurred within a daily range of $88.76 to $91.17, reflecting heightened bearish pressure during the session. Below is a multi-indicator technical analysis of IRM's price behavior over the past year.
Candlestick Theory
Recent candlestick patterns for Iron Mountain reveal critical technical levels. The August 22nd bullish engulfing pattern at $93.86 aligned with the $91–$92 support zone, which subsequently served as a resistance cluster after September 2nd’s breakdown. The sharp decline on September 2nd formed a long red candle, confirming rejection near the $91–$92 resistance area. Key support now rests near the late-April swing low of $85.72, while resistance consolidates at the psychological $92 level, reinforced by the 50-day moving average. This pattern suggests potential bearish continuation unless price reclaims the $92 resistance.
Moving Average Theory
The moving average configuration exhibits a bearish trend structure. Iron Mountain’s 50-day SMA ($93.82) crossed below both the 100-day SMA ($95.17) and the 200-day SMA ($96.45) in early August, forming a "death cross" that persists. Current price ($89.46) trades below all three key moving averages, confirming a long-term downtrend. The 200-day SMA near $96.45 now serves as major overhead resistance. This alignment underscores sustained downward momentum, with the moving average stack acting as dynamic resistance for any recovery attempts.
MACD & KDJ Indicators
The MACD histogram remains negative, residing below its signal line since mid-June, confirming entrenched bearish momentum. Concurrently, the KDJ oscillator signals an oversold condition—with the K-line at 18 and D-line at 22—after the September 2nd selloff. However, this oversold reading aligns with no significant bullish divergence, suggesting limited reversal potential. The MACD’s sustained negativity and KDJ’s failure to trigger bullish crossovers indicate prevailing downward pressure that may persist despite short-term oversold conditions.
Bollinger Bands
Iron Mountain’s volatility profile shows notable contraction, with Bollinger Band width narrowing by 25% over the past month, indicating reduced volatility and potential energy accumulation for a breakout. Price currently hugs the lower band near $88.76, reinforcing bearish momentum. A decisive close below this level could trigger an acceleration to the downside, while a rebound above the midline ($93.50) would signal bullish reversal potential. The band squeeze suggests an impending directional move, with probabilities favoring the downside due to the established downtrend.
Volume-Price Relationship
Volume analysis highlights bearish conviction during key breakdowns. The August 6th decline (-5.77%) occurred on 4.97 million shares—well above the 3-month average volume—validating the bearish breakout. Similarly, September 2nd’s 3.11% drop registered volume 60% higher than the prior session, confirming seller dominance. Conversely, up days since late August have shown below-average volume, undermining recovery sustainability. This divergence signals weak buying interest and robust selling pressure at resistance levels.
Relative Strength Index (RSI)
The 14-day RSI reading of 34 approaches oversold territory but remains above the critical 30 threshold. This reading aligns with similar oversold conditions in late May and mid-July, which preceded brief technical rebounds but no trend reversals. RSI divergence is absent from the latest downswing, suggesting no momentum shift is imminent. While oversold conditions may induce short-term bounces, the RSI’s position supports the dominant bearish trend without signaling exhaustion.
Fibonacci Retracement
Applying Fibonacci retracement to Iron Mountain’s dominant swing from the October 2024 high of $130.24 to the April 2025 low of $76.93 reveals significant confluences. The 38.2% retracement ($99.21) capped the June rally, while the 23.6% level ($91.52) now acts as immediate resistance. Current price trades below the 23.6% threshold after September 2nd’s breakdown. Should the downtrend continue, the 0% extension at $76.93 becomes the next major technical target, with intermediate support near the 2024 swing low of $72.33.
Confluence and Divergence Observations
Confluence exists between the 23.6% Fibonacci retracement ($91.52), the 50-day SMA ($93.82), and the multi-week candlestick resistance zone ($91–$92), creating a robust technical barrier. Significant bearish divergence appears between price action and volume patterns, where breakdowns occur on high volume while recovery attempts lack volume validation. Conversely, no bullish divergence emerges in the MACD or RSI, reinforcing the bearish consensus among indicators. Given the multi-indicator alignment, Iron Mountain’s technical posture favors bearish continuation unless a decisive breakout above the $92–$93 resistance cluster materializes.