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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index continued its bullish momentum for the second straight
session and rose around 342 points (2.63%) closing at a record new
high of 13,350.54. Moreover, the index has gained around 671 points
in the last two trading sessions indicating strong buying interest. We
believe the correction phase is over and the index may continue its
uptrend tagging new highs. Meanwhile, both momentum indicators
support the index for a further higher move.
Industries Qatar: Short-Term – Upmove
IQCD continued its rebound and rallied further breaching its
resistances of the 21-day and 55-day moving averages as well as the
QR188.50 level in a single swoop. Moreover, the stock formed a
sizable bullish candlestick formation indicating buying. We believe the
stock may rally further and test its key resistance of QR191.0.
Meanwhile, the RSI is in buy mode, while the MACD is closing the
signal line in a positive manner.
Al Rayan Islamic Index: Short-Term – Uptrend
The QERI Index surged around 2.97% hitting an all-time high of
4,444.86 as the bulls were under complete dominance. Moreover, the
index developed a bullish Marubozu candle pattern indicating
continuation of this uptrend. Meanwhile, the index has been
aggressively moving up over the past two days and may continue its
rally recording new highs. Further, both the momentum indicators are
providing bullish signals indicating continued acceleration.
Qatar Islamic Bank: Short-Term – Upmove
QIBK cleared its resistances of QR96.0 and QR99.50 in a single
trading session and tagged a 52-week high. Volumes were also large
on the rise which is a positive sign. We believe the stock may
continue its positive momentum and rally further recording a fresh
new 52-week high. Both the momentum indicators are in bullish
territory indicating strength at the current level. However, traders may
need to keep a close watch on QR99.50 for any reversal signs.
Masraf Al Rayan: Short-Term – Uptrend
MARK went up sharply yesterday gaining around 9.98% and tagged
a fresh new all-time high. Moreover, the stock’s rise was
accompanied by surge in volumes indicating increased buyer
participation. Further, the RSI is positively poised, while the MACD
has crossed the signal line into the bullish territory with no immediate
reversal signs. We believe the stock may continue its strong
momentum and continue its rally recording new highs.
Barwa Real Estate Co.: Short-Term – Upmove
BRES gained 4.59% and breached its resistances of QR39.70 and
QR40.40 tagging a 52-week high. We believe based on the recent
higher push and spike in volumes the stock may further continue its
rally and record fresh new 52-week highs. Moreover, the RSI is
moving strongly toward the overbought territory, while the MACD is
diverging away from the signal line in a bullish manner indicating the
strength to continue.
Saugata Sarkar Keith Whitney Sahbi Kasraoui QNB Financial Services SPC
Head of Research Head of Sales Manager - HNWI Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 PO Box 24025
email@example.com firstname.lastname@example.org email@example.com Doha, Qatar
DISCLAIMER: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of Qatar National Bank (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange; QNB is
regulated by the Qatar Central Bank. This publication expresses the views and opinions of QNBFS at a given time only. It is not an offer, promotion or recommendation to buy or sell securities or other investments, nor is it intended to constitute legal,
tax, accounting, or financial advice. We therefore strongly advise potential investors to seek independent professional advice before making any investment decision. Although the information in this report has been obtained from sources that QNBFS
believes to be reliable, we have not independently verified such information and it may not be accurate or complete. While this publication has been prepared with the utmost degree of care by our analysts, QNBFS does not make any representations or
warranties as to the accuracy and completeness of the information it may contain, and declines any liability in that respect. QNBFS reserves the right to amend the views and opinions expressed in this publication at any time. It may also express
viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
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*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 55-
day 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.
1> Simple Moving Average (SMA): A SMA is the average of the closing price of a security for a given period.
2> 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.
3> 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.
Name (Ticker) Last Close Trend Support Resistance
Short Term Long Term First Second First Second
Qatar Exchange Index (QE Index) 13,350.54 UP UP 13,300.00 13,195.88 13,450.00 13,600.00
Al Rayan Islamic Index (QERI Index) 4,444.86 UP UP 4,400.00 4,341.10 4,500.00 4,550.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD)* 57.30 UP UP 56.00 55.00 59.00 60.00
Commercial Bank of Qatar (CBQK QD) 68.50 FLAT UP 67.80 66.30 69.80 70.70
Doha Bank (DHBK QD) 64.70 FLAT UP 63.30 62.00 65.70 66.50
Qatar Islamic Bank (QIBK QD)* 100.10 UP UP 99.50 96.00 102.00 104.50
Qatar International Islamic Bank (QIIK QD) 87.50 UP UP 86.10 83.00 87.80 89.00
Qatar Insurance (QATI QD) 76.60 UP UP 76.00 74.80 77.00 79.00
Al Khalij Commercial Bank (KCBK QD) 23.45 UP UP 23.23 22.90 23.49 24.00
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD) 86.00 FLAT UP 85.20 83.00 87.80 90.50
Al Meera Consumer Goods Co. (MERS QD) 185.00 FLAT UP 183.00 182.00 187.00 189.00
Industries Qatar (IQCD QD)* 190.00 UP UP 188.50 186.40 191.00 194.60
Qatar Electricity & Water Co. (QEWS QD) 189.90 UP UP 188.00 185.00 190.00 192.00
Gulf International Services (GISS QD) 95.00 UP UP 95.00 93.00 97.00 100.00
Qatari Investors Group (QIGD QD) 66.60 FLAT UP 64.80 62.40 68.40 70.00
Real Estate Real Estate
Barwa Real Estate Co. (BRES QD)* 41.00 UP UP 40.40 39.70 41.40 42.00
United Development Co. (UDCD QD) 26.30 UP UP 26.00 25.29 26.45 27.10
Ooredoo (ORDS QD) 148.50 UP UP 147.80 145.00 149.00 151.00
Vodafone Qatar (VFQS QD) 18.59 UP UP 18.49 17.99 18.75 19.29
Nakilat (QGTS QD) 23.64 DOWN UP 23.40 22.45 23.90 24.20
Milaha (QNNS QD) 95.50 DOWN UP 95.10 93.00 96.50 98.30
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