Iron Mountain (IRM) surges 4.58% as bullish technical indicators confirm 5.60% two-day rally, eyes $104.72 resistance

Iron Mountain (IRM) Technical Analysis

Iron Mountain (IRM) has surged 4.58% in the most recent session, extending its two-day rally to 5.60%. The stock is trading at $104.46, with key support levels emerging around $96.07–$99.82 and resistance clustered near $101.02–$104.72. Candlestick patterns suggest bullish momentum, with a potential reversal from recent lows in late August and early September.

Candlestick Theory

Recent price action forms a bullish continuation pattern, with a strong breakout above the $100.35 level on September 16. The 213,655 shares traded on September 22 indicate increased conviction in the upward move. Key support levels at $96.07 (August 15) and $98.47 (September 18) have held multiple times, while resistance at $101.02 (September 16) and $104.72 (September 19) suggests potential for further consolidation.

Moving Average Theory

The 50-day moving average (approximately $99.00) is currently below the 100-day ($98.50) and 200-day ($95.00) averages, indicating a short-term bullish bias. The price trading above all three MAs suggests a healthy uptrend, though a potential bearish crossover looms if the 50-day MA fails to cross above the 100-day. The 200-day MA remains a critical long-term support zone.

MACD & KDJ Indicators

The MACD line (12, 26, 9) has crossed above the signal line, confirming a bullish momentum phase. The KDJ oscillator shows overbought conditions, with the %K line at 82 and %D at 75, suggesting a potential pullback. However, the divergence between MACD and KDJ—a rising MACD histogram paired with a flattening KDJ—hints at a possible trend extension rather than an immediate reversal.

Bollinger Bands

Volatility has expanded recently, with the upper band reaching $105.00 and the lower band at $96.50. The price’s proximity to the upper band ($104.46 vs. $105.00) indicates stretched conditions, increasing the likelihood of a retest of the mid-band ($100.75) or a breakout above the current high.

Volume-Price Relationship

Trading volume has surged during the recent rally, particularly on September 19 (3.12 million shares) and September 22 (2.14 million shares), validating the strength of the upward move. However, a decline in volume during the September 22 session suggests caution, as it may signal reduced buying pressure.

Relative Strength Index (RSI)

The 14-period RSI stands at 68, approaching overbought territory. While not yet above 70, the RSI’s rapid ascent from 45 to 68 in three days indicates aggressive buying. A close above 70 would confirm overbought conditions, but divergences—such as lower highs in RSI despite higher price highs—could foreshadow a correction.

Fibonacci Retracement

Key Fibonacci levels from the August 5–September 19 rally (high: $104.72, low: $96.07) include 23.6% at $102.00, 38.2% at $100.35, and 50% at $99.90. The current price near $104.46 suggests a potential retest of the 61.8% level at $98.20 if the trend reverses.

Backtest Hypothesis

The backtest strategy of buying IRM when RSI <30 and selling when RSI>70 from 2022 to 2025 achieved a 139.45% return, outperforming the benchmark by 92.99% and delivering a 28.37% CAGR. While the current RSI near 68 suggests proximity to the overbought threshold, the strategy’s historical success implies a sell signal may be warranted. However, the recent volume surge and MACD momentum suggest the uptrend could extend beyond the 70 RSI level, creating a confluence between the strategy’s rules and the current bullish technical setup.