Iron Mountain Rises 7.68% on Strong Volume and Bullish Technicals, Nears 78.6% Fibonacci Level

Iron Mountain (IRM) closed the most recent session with a robust 7.68% gain, forming a long-bodied bullish candlestick that suggests strong buying pressure. The high of $96.44 and close of $95.78 indicate a potential breakout above previous resistance levels, with the prior session’s low of $88.95 acting as a key support. A bearish engulfing pattern observed on January 26–27 suggests prior exhaustion, but the recent move has invalidated that bearish signal.

Candlestick Theory

The recent rally has established a key support zone around $88.61–$88.95 (February 3–5) and resistance at $96.44. A bullish engulfing pattern at $95.78 suggests continuation of the uptrend. However, a potential bearish divergence in the KDJ indicator around February 3–4 may hint at short-term profit-taking.

Moving Average Theory

The 50-day MA (~$92.50) is above the 200-day MA (~$90.50), forming a bullish “golden cross.” The 100-day MA (~$91.00) aligns with the 50-day, reinforcing the uptrend. Price currently sits above all three MAs, suggesting sustained momentum. However, the 200-day MA may act as a dynamic support if the rally stalls.

MACD & KDJ Indicators

MACD has crossed above the signal line with a positive histogram, confirming bullish momentum. The KDJ indicator shows %K (~80) and %D (~75) in overbought territory, suggesting a potential pullback. Divergence between the KDJ and price (e.g., higher highs in price vs. lower highs in %K) may indicate weakening momentum, though the recent volume surge validates the bullish case.

Bollinger Bands

Volatility has expanded significantly, with price touching the upper band. The 20-day Bollinger Band width is at its widest in months, indicating a potential consolidation phase. A break below the mid-band ($93.50) could trigger a retest of the lower band (~$89.00), but current positioning near the upper band suggests continuation.

Volume-Price Relationship

The recent session’s volume (2.46 million shares) is 50% higher than the 30-day average, validating the bullish move. However, declining volume on subsequent up days (e.g., February 4–6) may indicate waning enthusiasm. A surge in volume on a bearish reversal candle would confirm distribution.

RSI Analysis

RSI has spiked to ~78, entering overbought territory. While this typically warns of a pullback, the recent divergence in RSI (higher highs in price vs. lower highs in RSI) suggests caution. A close below 60 would signal weakening momentum, though a sustained move above 70 may indicate a strong trend.

Fibonacci Retracement

Key retracement levels from the January 16 high ($96.50) to the December 23 low ($80.80) include 50% at $88.65 and 61.8% at $93.65. The current price (~$95.78) aligns with the 78.6% level, which historically acts as a strong resistance. A break above this may target the 100% level (~$112.70), while a retest of the 50% level could trigger a correction.

Confluence and Divergences

The most compelling confluence occurs at the 78.6% Fibonacci level, where the upper Bollinger Band, RSI overbought condition, and KDJ overbought signals align. Divergences between RSI and price (e.g., RSI peaking before price) suggest caution, but the strong volume validates the bullish case. A break below $93.50 would trigger a retest of the 50% level, where moving averages and Fibonacci support may converge.