In the popular 'Lightning Round' segment of Mad Money Monday evening, Jim Cramer talks to callers about individual stocks they are interested in. Here's what he had to say about Iron Mountain (IRM) : "This is a good place to be and I like it," Cramer said about the storage and protection company.
Let's check it out.
In this daily bar chart of IRM, below, we can see that prices have been retesting the July low around $29. I cannot say for certain that prices will continue to hold this area with IRM below the declining 50-day and 200-day moving average lines.
The On-Balance-Volume (OBV) line is weak along with a bearish Moving Average Convergence Divergence (MACD) oscillator.
In this weekly bar chart of IRM, below, we can see that prices have been in a downtrend since 2017. Since July of last year prices have shifted to a sideways or neutral trend. Prices are below the flat 40-week moving average line.
The weekly OBV line has done something unusual in that it has risen since July of last year. During this sideways price action, buyers of IRM have been more aggressive - interesting.
The MACD oscillator has been trading around the zero line so we could turn up or down relatively quickly from here.
In this Point and Figure chart of IRM, below, we used weekly close only prices and a "traditional" plotting method of even dollar increments. A potential upside price target in the $44 area is being projected. Also, note that a decline to $27 would weaken the picture.
Bottom line strategy: The price of IRM is down around the lower end of its sideways trading range of the past several months. A break below $27 could precipitate further declines however. IRM could go on your shopping list but traders should wait for clear signs of new aggressive buying with a rising OBV line.