Iron Mountain set to mirror weak overall market
Information management comany Iron Mountain has enjoyed quite a stock price rise since January 2011, from about $18,00 to $41.00. The stock made a major uptrend, which is currently in a correction. For the medium-term traders a local downtrend on the daily chart has formed in this correction, which could correct to the area of $30.50.
IRM Weekly Chart
Management and risk description
On the daily chart (Figure 2) we can clearly see that a strong downtrend has formed, which is shown in Figure 2 in blue. The intensity can be identified on the basis of rapid movements in short direction and higher volume.
To get a good entry into this short trade we should wait for a subordinate downtrend on the hour chart. With increasing selling pressure this trade has targets around $26.50 and $24.00.
Above the price level of $31.00, the short idea would be over. Before entering a trade it is always advised to wait for clear signals and to look for any upcoming news e.g. earnings.
IRM Daily Chart
Source: ATT Trading
Stop: $ 31,00.
Target: $26,50, $ 24,00.
Time horizon: medium term.
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more