Iron Mountain Inc. (IRM) : "That has a good yield and it's a good stock," said Jim Cramer in response to a caller during the Lightning Round of Wednesday's Mad Money program. Let's check in with the charts and technical indicators to see if this is a good time to probe the long side of IRM.
In the daily bar chart of IRM, below, we can see that prices have been making lower lows the past twelve months. There was a strong rebound in January but it petered out quickly and prices skidded sharply lower at the end of April. Trading volume has been heavier since May, suggesting that sellers have been more active.
The declining On-Balance-Volume (OBV) line from mid-April tells us that sellers have been more aggressive. Prices are below the declining 50-day and the bearish 200-day moving average lines.
The trend-following Moving Average Convergence Divergence (MACD) oscillator failed at the underside of the zero line in June and July generating a weak picture.
In this weekly bar chart of IRM, below, we can see a wide downtrend the past two years. Prices are below the declining 40-week moving average line.
The weekly OBV line peaked in April and the MACD oscillator is bearish.
In this Point and Figure chart of IRM, below, we can see a bearish price target of $27.75 being projected.
Bottom-line strategy: IRM is looking weak and we could see a further decline to the $27.75 to $25 area in the weeks or months ahead. IRM may have a great fundamental story but it is likely we will get to buy it cheaper.