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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
The QE Index gained for the third straight session rising around 127
points (0.99%) to close at 12,854.26. The index continued its uptrend
and surpassed its important resistance near the 12,770.0 level to
make further headway. However, the index faces its key resistance
zone near the 12,940.0-12,960.0 levels, which have been tested on
four previous occasions. If the index manages to move above this
resistance zone, it may record a new high.
Milaha: Short-Term – Downmove
QNNS penetrated below its support of QR97.0 and the 55-day
moving average and caved under heavy selling pressure. Notably,
volumes were also large on the decline, which is a negative sign. With
the RSI drifting further down from the mid-line and the MACD growing
more bearish QNNS’ preferred direction seems to be on the
downside. We believe the stock may move down further and test
QR93.0. A close above QR95.10 may provide some relief.
Al Rayan Islamic Index: Short-Term – Upmove
The QERI Index extended its gains and rose 1.11% to close near its
day’s high at 4,241.73. The index cleared the interim resistance near
the 4,211.0 level as the bulls dominated the bears for the third
consecutive session. We believe based on the recent higher push the
index may test and surpass its next resistance of 4,247.34 and
approach toward 4,300.0. Conversely, any failure to move above
4,247.34 may result in consolidation and the index may test 4,211.0.
Nakilat: Short-Term – Upswing
QGTS cleared its resistances of QR24.61 and QR25.0 and tagged a
52-week high on the back of large volumes. The stock has been in
uptrend mode and is registering strong gains. We believe the stock
may proceed toward QR26.0 as it has strong momentum going in, as
indicated by the recent price action. Meanwhile, both the momentum
indicators are indicating that QGTS is likely to continue its bullish
momentum. However, a close below QR25.0 may halt its upmove.
Vodafone Qatar: Short-Term – Breakout
VFQS surged 8.40% and surpassed its resistances of QR16.89 &
QR17.99 along with the descending trendline, which had restricted
the bullish move in the past. We believe this strong breach of
resistances has bullish implications and provides an upside target of
QR18.75, followed by QR19.29. Moreover, volumes were also large
on the breakout indicating rising buying interest. However, a dip below
QR17.99 may result in a false breakout. The RSI is moving up.
Industries Qatar: Short-Term – Upmove
IQCD breached its resistances of QR183.0 and the 55-day moving
average in a single swoop indicating continued strength. Moreover,
the stock has been moving up over the past few days since clearing
the QR178.30 level. We believe the stock may continue its advance
and test the next resistance of QR186.40. However, a dip below the
55-day moving average may pull the stock to test QR183.0.
Meanwhile, both the indicators are providing bullish signals.
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
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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) 12,854.26 UP UP 12,768.17 12,700.00 12,940.00 13,000.00
Al Rayan Islamic Index (QERI Index) 4,241.73 UP UP 4,211.12 4,148.08 4,247.34 4,300.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD) 48.15 UP UP 47.00 45.90 48.50 49.75
Commercial Bank of Qatar (CBQK QD) 69.40 UP UP 67.30 66.50 69.80 70.70
Doha Bank (DHBK QD) 65.00 UP UP 63.90 62.00 65.70 66.40
Qatar Islamic Bank (QIBK QD) 88.10 UP UP 87.30 84.70 88.50 90.00
Qatar International Islamic Bank (QIIK QD) 85.00 UP UP 83.00 80.70 86.10 98.50
Qatar Insurance (QATI QD) 76.20 UP UP 74.80 72.50 77.00 79.00
Al Khalij Commercial Bank (KCBK QD) 23.16 UP UP 22.90 22.49 23.23 23.50
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD) 90.70 UP UP 87.80 85.00 92.50 94.00
Al Meera Consumer Goods Co. (MERS QD) 183.80 UP UP 183.00 181.40 187.50 190.00
Industries Qatar (IQCD QD)* 185.10 UP UP 183.00 181.40 186.40 188.50
Qatar Electricity & Water Co. (QEWS QD) 185.00 UP UP 184.00 180.00 186.00 188.00
Gulf International Services (GISS QD) 89.00 DOWN UP 86.60 84.80 90.00 93.00
Qatari Investors Group (QIGD QD) 65.20 UP UP 64.70 61.30 68.40 71.70
Barwa Real Estate Co. (BRES QD) 38.40 UP UP 37.40 36.80 38.40 39.20
United Development Co. (UDCD QD) 25.50 UP UP 25.29 24.70 26.00 26.50
Ooredoo (ORDS QD) 148.00 UP UP 145.00 143.00 148.00 149.00
Vodafone Qatar (VFQS QD)* 18.20 UP UP 17.99 17.30 18.75 19.29
Nakilat (QGTS QD)* 25.40 UP UP 25.00 24.61 26.00 26.50
Milaha (QNNS QD)* 95.00 UP UP 93.00 92.00 95.10 96.50