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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Pullback
The QE Index remained in bearish mode throughout the day and
shed 164 points (-1.28%). The index witnessed a gap-down opening
and breached the 12,800.0 and 12,700.0 levels in a single swoop as
sustained selling pushed it lower to close at 12,696.24. The next
defendable support is seen near the 12,678.84 level. This is a critical
area to watch out for traders as a dip below this level could trigger a
sell-off and may result in bearish implications.
Masraf Al Rayan: Short-Term – Downmove
MARK penetrated below the support of QR48.50 on Sunday and
continued to move lower yesterday. Moreover, the stock has been in
declining mode and is moving along the descending trendline over
the past few days. With the RSI and the MACD lines pointing down it
seems MARK may continue to drift lower and test the 21-day moving
average. However, if the stock manages to move above QR48.50 it
may provide some relief.
Al Rayan Islamic Index: Short-Term – Pullback
The QERI Index continued to drift lower and fell around 38 points (-
0.89%) to close the session below the 4,200.0 level. Moreover, the
index has been experiencing a steady decline over the past few days
since peaking at 4,317.91. We believe the index may witness a
further downside and test its support near the 4,150.0 level. However,
the index needs to move above 4,248.0 for the bulls to get back into
action; until then we expect the weakness to continue.
Ooredoo: Short-Term – Downmove
ORDS witnessed a gap-down opening and breached its support at
QR145.0 on the back of large volumes. Moreover, the stock
developed a bearish Marubozu candle indicating the continuation of
this downmove. We believe although the stock is sitting right at its
support of QR143.0 it may not cling onto it and decline further to test
QR141.80. Meanwhile, the RSI has shown a bearish divergence,
while the MACD has crossed the signal line into the negative territory.
Al Khalij Commercial Bank: Short-Term – Downmove
KCBK breached its supports of the 21-day moving average and
QR22.49 in a single swoop and caved under heavy selling pressure.
Notably, volumes were also large on the decline which is a further
negative sign. Meanwhile, with both the momentum indicators looking
weak KCBK’s preferred direction seems to be on the downside. We
believe the stock may not hold onto its support of QR21.80, which is
also in proximity to the 55-day moving average and test QR21.29.
Qatari Investors Group: Short-Term – Bounce Back
QIGD rebounded and gained 3.03% to surpass its resistance of the
descending trendline after consolidating below it over the past few
days. Moreover, the stock developed a bullish engulfing candle
pattern, which usually indicates a bullish signal. The stock faces its
immediate resistance at QR68.40. Any move above this level may
spark additional buying interest, which may push the stock further
toward QR70.0. Meanwhile, the RSI is moving up in a bullish manner.
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
firstname.lastname@example.org email@example.com firstname.lastname@example.org 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
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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) 12,696.24 UP UP 12,678.84 12,600.00 12,768.17 12,850.00
Al Rayan Islamic Index (QERI Index) 4,199.68 UP UP 4,148.08 4,100.00 4,247.34 4,301.50
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD)* 47.80 UP UP 45.02 44.15 48.50 51.80
Commercial Bank of Qatar (CBQK QD) 68.30 UP UP 67.30 65.75 69.80 70.70
Doha Bank (DHBK QD) 64.70 UP UP 63.30 62.00 65.70 66.50
Qatar Islamic Bank (QIBK QD) 85.00 UP UP 84.70 81.70 87.30 88.50
Qatar International Islamic Bank (QIIK QD) 84.50 UP UP 83.00 80.70 86.10 98.50
Qatar Insurance (QATI QD) 75.10 UP UP 74.80 72.50 76.00 77.00
Al Khalij Commercial Bank (KCBK QD)* 22.00 DOWN FLAT 21.80 21.29 22.49 22.90
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD) 87.00 UP UP 85.00 83.40 87.80 90.00
Al Meera Consumer Goods Co. (MERS QD) 186.90 UP UP 185.00 183.00 190.00 195.00
Industries Qatar (IQCD QD) 179.00 UP FLAT 178.30 175.00 181.40 183.00
Qatar Electricity & Water Co. (QEWS QD) 185.90 UP UP 184.00 180.00 186.00 188.00
Gulf International Services (GISS QD) 89.10 DOWN UP 86.60 84.80 90.00 93.00
Qatari Investors Group (QIGD QD)* 67.90 UP UP 64.70 61.30 68.40 71.70
Barwa Real Estate Co. (BRES QD) 39.40 UP UP 38.40 37.40 39.70 41.40
United Development Co. (UDCD QD) 25.85 UP UP 25.80 25.29 27.20 28.12
Ooredoo (ORDS QD)* 143.00 DOWN DOWN 143.00 141.80 145.30 149.00
Vodafone Qatar (VFQS QD) 17.15 UP UP 16.89 16.00 17.99 19.29
Nakilat (QGTS QD) 23.69 UP UP 22.80 22.50 24.00 24.50
Milaha (QNNS QD) 100.60 UP UP 100.10 98.30 102.50 104.90