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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index extended its spectacular run for the sixth straight
session gaining around 172 points (1.34%) to close at a new all-time
high of 12,939.80. The index for the first time breached the 12,800.0
and 12,900.0 psychological levels and continued its bullish
momentum on the back of large buying interest. This indicates a bull
market rally. Meanwhile, with both indicators growing bullish, the
index could extend its rally tagging new highs.
Barwa Real Estate Co.: Short-Term – Upmove
BRES surpassed its important resistance of QR37.40 on Monday and
continued its rally moving above QR38.40 yesterday, tagging a new
52-week high. Notably, volumes were also large indicating rising
buying interest. We believe the stock has strong momentum going in
and may continue to march toward QR39.60. However, any retreat
below QR38.40 may halt its upmove. The RSI is moving up, while the
MACD is about to cross into the positive territory.
Al Rayan Islamic Index: Short-Term – Uptrend
The QERI Index continued its astonishing rally moving higher by
1.16%, registering fresh record highs. Notably, this is the index’s sixth
consecutive day of gains thus signifying sustained strength in the
upmove. We believe the index is in bull-run mode and may continue
its strong momentum tagging new highs. Meanwhile, the index has
support for a further higher move from the RSI, which is holding
strongly in the overbought zone, while the MACD is in uptrend mode.
Nakilat: Short-Term – Breakout
QGTS surged around 8.60% and breached its resistances of
QR22.80 and QR23.70 in a single swoop, tagging a new 52-week
high. The recent price action and spike in volumes indicate that the
stock may continue its rally toward QR24.80. If the stock manages to
move above this level it may spark additional buying interest, which
may push it to test QR25.70. Meanwhile, both indicators are pointing
higher indicating a potential rally.
Qatar Islamic Bank: Short-Term – Upmove
QIBK cleared the resistances of QR87.30 and QR88.0 and tagged a
new 52-week high. We believe this strong breach of resistances has
bullish implications and provides an upside target of QR90.70,
followed by QR91.80. Moreover, the stock developed a bullish
Marubozu candle pattern indicating a likely continuation of this
upmove. Meanwhile, the RSI and the MACD lines are providing
bullish signals, thus reinforcing our positive technical outlook.
Vodafone Qatar: Short-Term – Uptrend
VFQS continued its bullish momentum and tagged fresh new highs.
The stock has been in uptrend mode since moving above both the
moving averages. Moreover, the stock has been witnessing
aggressive rally over the past few days and may extend its rally,
recording new highs. Meanwhile, the RSI is moving strongly in the
overbought territory, while the MACD is widening away from the
signal line in a bullish manner with no immediate reversal signs.
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
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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) 12,939.80 UP UP 12,892.76 12,800.00 13,000.00 13,100.00
Al Rayan Islamic Index (QERI Index) 4,292.34 UP UP 4,247.34 4,200.00 4,330.00 4,350.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD) 49.95 UP UP 48.50 47.00 51.80 53.00
Commercial Bank of Qatar (CBQK QD) 69.80 UP UP 68.40 65.75 70.00 71.50
Doha Bank (DHBK QD) 63.90 UP UP 62.00 61.50 64.20 64.80
Qatar Islamic Bank (QIBK QD)* 89.00 UP UP 88.00 87.30 90.70 91.80
Qatar International Islamic Bank (QIIK QD) 86.30 UP UP 86.10 83.00 86.80 88.50
Qatar Insurance (QATI QD) 77.30 UP UP 76.00 74.80 78.50 80.00
Al Khalij Commercial Bank (KCBK QD) 25.85 UP UP 25.00 23.49 26.60 27.40
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD) 82.30 UP UP 81.70 79.00 83.40 85.00
Al Meera Consumer Goods Co. (MERS QD) 180.80 UP UP 179.00 175.00 183.00 185.00
Industries Qatar (IQCD QD) 181.00 DOWN DOWN 180.00 178.30 181.40 183.00
Qatar Electricity & Water Co. (QEWS QD) 186.00 UP UP 184.00 180.00 188.00 190.00
Gulf International Services (GISS QD) 89.00 UP UP 86.60 84.80 90.00 93.00
Qatari Investors Group (QIGD QD) 69.00 UP UP 68.40 64.70 71.70 73.20
Barwa Real Estate Co. (BRES QD)* 39.25 UP UP 38.40 37.40 39.60 41.40
United Development Co. (UDCD QD) 24.86 UP UP 24.25 23.33 25.29 26.20
Ooredoo (ORDS QD) 147.90 UP UP 145.30 143.50 149.00 151.00
Vodafone Qatar (VFQS QD)* 18.75 UP UP 17.99 17.00 19.30 20.50
Nakilat (QGTS QD)* 24.30 UP UP 23.70 22.80 24.80 25.70
Milaha (QNNS QD) 98.90 UP UP 98.30 96.50 100.10 101.50