After Golden Cross, Iron Mountain (IRM)'s Technical Outlook is Bright

After reaching an important support level, Iron Mountain Incorporated (IRM) could be a good stock pick from a technical perspective. IRM recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.

Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.

A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.

IRM has rallied 20.6% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates IRM could be poised for a breakout.

Once investors consider IRM's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 1 revision higher, and the Zacks Consensus Estimate has increased as well.

Investors should think about putting IRMon their watchlist given the ultra-important technical indicator and positive move in earnings estimates.