Good Setup in Iron Mountain

Published on Thursday, 02 February 2012 18:16 Written by Christian Paolinetti

New York, February 2nd (TradersHuddle.com) - Shares of Iron Mountain Incorporated (NYSE:IRM) closed the trading session at $30.75 near its 50 day and 200 day moving averages currently set at $30.58 and $31.77 respectively. Iron Mountain's price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

Iron Mountain Incorporated (NYSE:IRM) provides records and information management services to customers worldwide. The Company offers records management services for both physical and digital media, disaster recovery support services, and consulting.

Iron Mountain price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Iron Mountain with a small position and wait for the stock to break out above the 200 day moving average at $31.77, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $30.58 breaks it could mean further downside in the horizon for Iron Mountain.