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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
The QE index moved higher for the second consecutive session and
rose around 167 points (1.35%) to close near 12,550.0. The index
witnessed an impressive rally as it breached the 12,400.0 and
12,500.0 levels, along with the 21-day moving average in a single
swoop. We believe this strong breach of resistances has bullish
implications and the index may rally further toward 12,600.0-
12,650.0. Conversely, 12,500.0 may provide an immediate support.
Medicare Group: Short-Term – Upmove
MCGS gained 2.24% and cleared the resistances of the 55-day
moving average and QR86.0 in a single trading session on the back
of large volumes. We believe this strong breach of resistances has
bullish implications and provides an upside target of QR87.80,
followed by QR89.80. However, a retreat below QR86.0 may halt its
upmove. Meanwhile, the RSI is in the buy zone, while the MACD is
diverging away in a positive manner, indicating a higher move.
Al Rayan Islamic Index: Short-Term – Upmove
The QERI index extended its gains for the third consecutive session
and rallied 1.72% to settle near the 4,200.0 mark. Bulls completely
dominated the session as the index cleared both the 21-day moving
average and the 4,150.0 level in a single trading session. Looking
ahead, traders should watch out for a test of 4,250.0. However, a
retreat below 4,150.0 may result in a pullback. Meanwhile, both the
indicators support a likely higher move.
Gulf International Services: Short-Term – Uptrend
GISS breached the resistance of QR100.0 and rallied around 2.02%,
tagging a new high. Further, the stock has been registering strong
gains over the past few days and is in an uptrend mode. We believe
the stock may continue its bullish momentum to record new highs.
However, traders may need to keep a close watch on QR100.0 for
any reversal signs. Meanwhile, both the momentum indicators are
moving in a bullish manner, indicating strength.
Masraf Al Rayan: Short-Term – Upmove
MARK advanced 3.59% and surpassed both the resistances of the
21-day moving average and QR51.0 in a single swoop, after
consolidating over the past few days. Notably, volumes were also
high, which is a positive sign. We believe, based on the current bullish
move, the stock may clear the 55-day moving average, targeting
QR52.60. However, a dip below QR51.0 may drag the stock.
Meanwhile, both the indicators are providing bullish signals.
Qatar Islamic Bank: Short-Term – Upmove
QIBK continued its rally and moved above the resistance of QR93.90
for the first time since May. The stock is current sitting exactly on its
immediate resistance of QR96.0. With both the momentum indicators
pointing upward, we believe QIBK’ preferred direction is on the
upside. Thus, traders may consider buying the stock at the current
level and on declines up to QR95.0 for a target of QR98.40 with a
stop loss of QR93.90.
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Head of Research Senior Research Analyst Senior Research Analyst Manager - HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
firstname.lastname@example.org email@example.com 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
viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report.
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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) 12,549.28 UP DOWN 12,513.65 12,465.50 12,678.84 12,768.17
Al Rayan Islamic Index (QERI Index) 4,196.54 UP DOWN 4,148.08 4,100.00 4,211.12 4,247.34
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD)* 52.00 UP FLAT 51.00 49.75 52.60 54.00
Commercial Bank of Qatar (CBQK QD) 65.80 UP DOWN 64.92 63.67 66.30 67.40
Doha Bank (DHBK QD) 57.40 DOWN DOWN 56.50 55.80 57.40 58.10
Qatar Islamic Bank (QIBK QD)* 96.00 UP UP 95.00 93.90 98.30 99.50
Qatar International Islamic Bank (QIIK QD) 84.80 UP DOWN 83.50 81.70 85.00 86.10
Qatar Insurance (QATI QD) 82.40 UP UP 81.40 80.00 82.50 83.90
Al Khalij Commercial Bank (KCBK QD) 22.16 UP DOWN 22.00 21.87 22.35 22.60
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD)* 86.90 UP UP 86.00 85.10 87.80 89.80
Al Meera Consumer Goods Co. (MERS QD) 175.00 UP DOWN 173.89 164.00 179.00 180.00
Industries Qatar (IQCD QD) 176.00 DOWN DOWN 174.90 173.90 178.30 180.10
Qatar Electricity & Water Co. (QEWS QD) 182.80 DOWN DOWN 182.00 180.00 184.00 185.20
Gulf International Services (GISS QD)* 101.00 UP UP 100.00 98.00 101.50 103.00
Qatari Investors Group (QIGD QD) 56.50 DOWN DOWN 56.10 54.40 57.00 60.60
Real Estate Real Estate
Barwa Real Estate Co. (BRES QD) 39.50 UP UP 39.20 38.40 40.10 41.00
United Development Co. (UDCD QD) 24.86 UP UP 24.75 24.00 25.30 26.00
Ooredoo (ORDS QD) 130.00 DOWN DOWN 128.00 125.80 130.00 133.90
Vodafone Qatar (VFQS QD) 18.32 FLAT FLAT 18.00 17.70 18.75 19.30
Nakilat (QGTS QD) 22.00 DOWN DOWN 21.80 21.45 22.19 22.45
Milaha (QNNS QD) 94.40 UP FLAT 93.10 92.00 95.10 96.50