TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
Al Rayan Islamic Index: Short-Term – Upmove
Masraf Al Rayan: Short-Term – Upswing
The QE Index continued its bullish momentum on the back of large
volumes, tagging a 52-week high surpassing its previous best of
11,348.45. We believe the index has been witnessing strong gains
over the past few days and may resume its next leg of rally toward
the 11,400.0-11,450.0 levels. The RSI is moving up toward the
overbought territory indicating strength to continue. Conversely, a
retreat below 11,338.41 may result in a pullback toward 11,300.0.
The QERI Index extended its rally and tagged another new all-time
high as bulls continued their domination over the bears for the fourth
consecutive session. The index has been aggressively moving up
over the past few days and may continue to accelerate, tagging new
highs. Moreover, the RSI is trending strongly in the bullish territory,
thus supporting a further upmove. However, traders may need to
keep a close watch near 3,254.0 for any reversal signs.
MARK continued its relentless run and tagged another all-time high.
We believe the stock has been in upmove mode since clearing its
resistance of QR35.0 and is registering strong gains since then.
Meanwhile, the RSI and the MACD lines are trending higher showing
no immediate trend reversal signs. We believe the stock may
continue to advance and tag new highs until it trades above QR38.0.
Any dip below this level may result in consolidation.
Qatar Islamic Bank: Short-Term – Upswing
Vodafone Qatar: Short-Term – Breakout
Gulf International Services: Short-Term – Breakout
QIBK continued its upmove and tagged another new 52-week high on
the back of large volumes. Moreover, the stock has been gaining
strength and is gradually moving up over the past few days.
Meanwhile, the bullishness in the RSI is intact, while the MACD is
diverging away from the signal line in a bullish manner. We believe
the recent price action indicates that the stock may continue to rise,
targeting the QR79.0-79.60 levels.
VFQS continued to move higher on Monday and breached the
resistance of QR12.09 for the first time since November. Notably,
volumes were also high on the breakout indicating rising buying
interest. We believe the current higher push has enough steam to test
and surpass QR12.15, targeting the QR13.0 level. Meanwhile, the
RSI is moving strongly in the overbought territory, while the MACD is
widening away from the signal line on the upside.
GISS managed to surpass the QR84.60 level and tagged an all-time
high. We believe based on the momentum of the current higher move
the stock is poised to tag new highs. Moreover, the stock developed a
bullish Marubozu candle pattern indicating the possibility of a
continued rise. Meanwhile, the RSI and the MACD lines are in
uptrend mode suggesting traders may witness a further rally.
However, a dip below the QR84.60 level may halt the upmove.
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Qatar Exchange Index (QE Index)
Al Rayan Islamic Index (QERI Index)
Masraf Al Rayan (MARK QD)*
Commercial Bank of Qatar (CBQK QD)
Doha Bank (DHBK QD)
Qatar Islamic Bank (QIBK QD)*
Qatar International Islamic Bank (QIIK QD)
Qatar Insurance (QATI QD)
National Leasing Holding Co. (NLCS QD)
Widam Food Co. (WDAM QD)
Al Meera Consumer Goods Co. (MERS)
Industries Qatar (IQCD QD)
Qatar Electricity & Water Co. (QEWS QD)
Gulf International Services (GISS QD)*
Qatari Investors Group (QIGD QD)
Barwa Real Estate Co. (BRES QD)
United Development Co. (UDCD QD)
Ooredoo (ORDS QD)
Vodafone Qatar (VFQS QD)*
Nakilat (QGTS QD)
Milaha (QNNS QD)
Banks and Financial Services
Consumer Goods and Services
*These stocks are today’s suggested ideas
Overall Methodology: The charts and descriptions on Page 1 provide an indicative view of the future direction of the equities mentioned. The table on page 2 has been provided to denote historical movements in certain stocks. The historical trend analysis uses 21- and 55day SMAs for indicating short-term and long-term trends, respectively. Based on these SMAs, the historical direction of the trend is denoted as UP, DOWN or FLAT.
Selection of Key Stocks of the Day: Key stocks’ selection is based on our analysis of 19 members of the QE Index (excludes QNBK QD). Analysis includes identifying trends (short-term as well as long-term), patterns and support/resistance levels.
Trend Direction: The methods used to determine trend direction are subjective in nature. We use 21-day SMA and 55-day SMA, absolute price movements, price movements relative to SMAs and accurately drawn trend lines and chart patterns to determine the short- and
Investment Horizon: The definition of short term and long term depends upon investors’ preferences and their investment objectives. As a rule of thumb, the time horizon for traders/short-term trend is 1-3 weeks while it is 1-3 months for investors/long-term trend.
Combining Technical and Fundamental Analysis: Investors can combine technical analysis (TA) with fundamental analysis (FA) to maximize their investment returns. While the “True Value” of stocks could be estimated by FA, the entry and exit timings could be fine
tuned using technical analysis to benefit from short-term movements in stock prices.
Trading Tactics: The trend direction should be analyzed based on the time-horizon of your investments. In general, investors attempt selling close to resistance levels during a downtrend and attempt buying close to support levels during uptrend.
Simple Moving Average (SMA): A SMA is the average of the closing price of a security for a given period.
RSI (Relative Strength Index): A technical momentum indicator that ranges from 0 to 100 and compares the stock’s recent price movements by evaluating recent gains and losses. Stocks with RSI above 70 could be considered overbought and below 30 could be
considered oversold. If the RSI falls below 70, it is a bearish signal. On the other hand, if the RSI rises above 30 it is considered bullish. We use a RSI of 14 days.
MACD (Moving Average Convergence Divergence): MACD denotes the relationship between two moving averages, which is used to spot changes in strength, direction, momentum and duration of a stock price trend. The MACD is calculated by subtracting the 26-day
exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the signal line, is also plotted on top of the MACD, functioning as a trigger for buy/sell signals. The MACD line above the signal line provides a positive signal and vice versa.
Ahmed M. Shehada
QNB Financial Services SPC
Head of Research
Tel: (+974) 4476 6534
Head of Trading
Tel: (+974) 4476 6535
Head of Sales
Tel: (+974) 4476 6533
Manager - HNWI
Tel: (+974) 4476 6544
Contact Center: (+974) 4476 6666
PO Box 24025
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