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7 April Daily Technical Trader
7 April Daily Technical Trader
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7 April Daily Technical Trader

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  • 1. Page 1 of 2 TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER QE Index: Short-Term – Upmove The QE Index continued its strong upward momentum breaching the 12,000 resistance level to close at 12,098.46, up 0.96%. The index closed at the highest point of the day, which indicates further strength to move higher. The index faces its immediate support in the 11,990- 12,000 range, while the next support level is at 11,916. On the upside, the index is likely to see resistance at 12,150. Both the technical indicators are providing a positive signal. Ooredoo.: Short-Term – Upmove ORDS found support at its 21-day moving average (currently at QR139.61) and bounced back to close about 0.8% higher at QR143.0. The MACD and the RSI are providing a bullish signal. The stock is likely to find resistance near its 55-day moving average (currently at QR145.29). The next resistance level is seen at QR149. On the flip side, investors should exercise caution if the stock falls below its support of QR141. Al Rayan Islamic Index: Short-Term – Upmove The QERI Index surged about 2.5% to close at a record high of 3,796.25, just below the psychological resistance level of 3,800. The gains were supported by very strong volumes, which is a positive sign. The index also closed near the highest point of the day, again suggesting further upside strength in the index. Both the technical indicators are giving a bullish signal. On the downside, support is seen in the 3,700-3,705 range. Industries Qatar: Short-Term – Downmove The IQCD stock has been under pressure over the last three trading sessions. The stock is now close to its support of the 55-day moving average (QR183.69). A move below this can take the stock to QR181.40, with the next support at QR178.30. The RSI has been trending lower, indicating weakness in the stock. In addition, the MACD is also converging with the signal line. However, investors should exercise caution if the stock moves back above QR187.50. Qatari Investors Group: Short-Term – Breakout QIGD after struggling to move above its resistance level of QR57.70 witnessed a strong breakout on Sunday, surging 9.9% to close at QR61.30. The gains were on the back of heavy volumes, which is a positive sign. The RSI is in the overbought zone and continues to move higher, while the MACD is diverging away from the signal line. However, investors should exercise caution if the stock slips back below the QR57.70 level. Qatar Electricity & Water Co.: Short-Term – Pullback QEWS tested its resistance of QR178.20 over the last couple of trading sessions, but was unable to close above it. The RSI is near the overbought zone, and is unable to move higher. If the stock slips back from here, it can fall toward its support of QR174.40. The next support is provided by its 21-day moving average (at QR171.72). On the flip side, investors should exercise caution if QEWS closes above the QR180 level.
  • 2. Contacts 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 saugata.sarkar@qnbfs.com.qa keith.whitney@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa 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. Page 2 of 2 *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 long-term trends. 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. Definitions: 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) 12,098.46 UP UP 11,990.0 11,916.0 12,150.00 12,200.00 Al Rayan Islamic Index (QERI Index) 3,796.25 UP UP 3,700.00 3,663.00 3,800.00 3,825.00 Banks and Financial Services Banks and Masraf Al Rayan (MARK QD) 42.40 UP UP 42.00 40.00 43.50 45.00 Commercial Bank of Qatar (CBQK QD) 65.50 UP UP 63.67 61.67 66.10 68.10 Doha Bank (DHBK QD) 60.40 UP DOWN 59.23 58.20 61.50 63.30 Qatar Islamic Bank (QIBK QD) 76.30 UP DOWN 76.00 75.00 77.20 76.00 Qatar International Islamic Bank (QIIK QD) 75.40 UP UP 74.40 72.80 75.80 79.40 Qatar Insurance (QATI QD) 70.00 UP UP 67.50 66.90 72.00 74.50 Al Khalij Commercial Bank (KCBK QD) 22.45 UP UP 22.30 21.80 23.05 23.30 Consumer Goods and Services Consumer G Medicare Group (MCGS QD) 76.00 UP UP 74.80 74.00 77.50 80.00 Al Meera Consumer Goods Co. (MERS QD) 171.10 UP UP 164.00 159 175.00 182.00 Industrials Industries Qatar (IQCD QD)* 185.50 UP UP 181.40 178.30 187.50 190.00 Qatar Electricity & Water Co. (QEWS QD)* 178.00 UP UP 174.40 170.90 178.20 180.00 Gulf International Services (GISS QD) 89.30 UP UP 86.60 84.80 90.00 92.00 Qatari Investors Group (QIGD QD)* 61.30 UP DOWN 57.70 56.20 62.00 63.50 Real Estate Barwa Real Estate Co. (BRES QD) 37.80 UP UP 37.40 36.80 38.40 39.20 United Development Co. (UDCD QD) 21.30 FLAT DOWN 21.24 21.00 21.50 22.00 Telecom Ooredoo (ORDS QD)* 143.00 UP DOWN 141.00 139.90 145.30 149.00 Vodafone Qatar (VFQS QD) 14.05 UP UP 14.00 13.20 14.25 14.50 Transportat Nakilat (QGTS QD) 20.63 FLAT DOWN 20.44 20.26 20.66 20.90 Milaha (QNNS QD) 94.10 FLAT FLAT 93.00 91.30 95.10 98.40

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