Bank of the Ozarks
One potential earnings short-squeeze candidate in the regional banking complex is Bank of the Ozarks (OZRK), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Bank of the Ozarks to report revenue of $59.33 million on earnings of 55 cents per share.
The current short interest as a percentage of the float for Bank of the Ozarks is pretty high at 11.8%. That means that out of the 30.93 million shares in the tradable float, 3.65 million shares are sold short by the bears. This is a decent short interest on a stock with a relatively low tradable float. If the bulls get the earnings news they're looking for, then shares of OZRK could rip higher post-earnings.>>Trade These 5 Huge Stocks for Gains From a technical perspective, OZRK is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently sold off from its 52-week high of $45.16 to its low of $41.23 a share. So far, the 50-day moving average of $40.17 for OZRK has not been broken off that recent pullback. If you're bullish on OZRK, then I would wait until after its report and look for long-biased trades as long as this stock is trending above its 50-day at $40.17, and then once it breaks out above some near-term overhead resistance levels at $44 to $45.16 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 156,533 shares. If we get that breakout, then OZRK will set up to enter new 52-week-high territory above $45.16, which is bullish technical price action. Some possible upside targets off that move are $50 to $52. I would avoid OZRK or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support at $41.23 a share and then below its 50-day at $40.17 a share with high volume. If we get that move, then OZRK will set up to re-test or possibly take out its next major support levels $38 to $36 a share.
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