The chart for Bank of the Ozarks (NASDAQ:OZRK) below reveals a mountain-like pattern from May 2015 through this past May. 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 for nearly 5 months. The picture, though, is starting to brighten -- perhaps with 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 and is in the middle of a resistance/support zone as 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 room to run if the 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, which would firmly back a bull move.