Positive Stirrings at Bank of the Ozarks Headquarters

• Posted by Greg Harmon
• on October 5th, 2016

One look at the headquarters of Bank of the Ozarks and it is easy to see why Phil Pearlman went to work for them as a marketing director. Tough to sell with that image. But his efforts seem to be helping to turn things around. What was once a deathly looking chart, is now showing signs of life.

The chart below showed a pattern that looked like the Ozark Mountains from May 2015 through to May this year. In fact it is formally known as a Head and Shoulders topping pattern. That pattern gives a price objective to 18 on the downside on a trigger. And that trigger happened with a move below the neckline in June. But the downside has never materialized. In fact the price stayed below the trigger for less than a day.

Now that bearish chart has morphed into a sideways consolidation. This has been the case for nearly 5 months. The picture is starting to bright now though. perhaps a second shift to the upside. With a touch at the 200 day SMA Wednesday the stock is on the edge of a bullish move. It is in the middle of a resistance/support zone and the momentum indicators are looking up. The RSI is rising in the bullish zone and the MACD is crossing up. And with over 10% short interest this stock has some fuel to run if shorts get spooked. Look for a move over 41 to get bullish and then over the right Shoulder of that Head and Shoulders pattern at 45.34 to negate the pattern and firmly back a bull move.

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* Picture is not the Bank of the Ozarks Headquarters

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