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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index extended its gains, rallying around 132 points, up by
1.07% on the back of large volumes. The index continued its bullish
momentum and comfortably breached the 12,400.0 psychological
level to close at 12,453.86. We believe the index has a strong
momentum going and may continue its rally to advance toward
12,500.0-12,514.0 levels. Meanwhile, both the momentum indicators
support the index for a higher move.
Masraf Al Rayan: Short-Term – Uptrend
MARK simultaneously breached the resistances of both the
ascending triangle at QR43.50 and QR44.15 on the back of large
volumes, tagging a new all-time high. Further, the stock developed a
bullish Marubozu candle pattern, indicating a likely continuation of this
rally. The stock has been in an uptrend mode since moving above the
21-day moving average and has gained strength. With both the
indicators looking strong, the stock is poised for new highs.
Al Rayan Islamic Index: Short-Term – Uptrend
The QERI Index rallied aggressively and moved higher by 1.95% to
surpass its previous best of 4,027.12. Based on the current higher
push and strong buying interest, we believe the index may continue to
rise, tagging new highs. The index is currently trading in an
unchartered territory and has no resistance level to deal with.
Meanwhile, the bullishness in the RSI remains intact, while the MACD
is diverging away from the signal line on the upside.
United Development Co.: Short-Term – Breakout
UDCD surpassed the resistances of QR22.66 and the rising wedge
trendline at QR23.09 in a single trading session. Notably, volumes
were also large on the breakout, which is a positive sign. We believe
this strong resistance breach has bullish implications and the stock
may rally further to test QR23.42. However, a dip below its ascending
trendline may halt its upmove. Meanwhile, both the indicators are
providing bullish signals, suggesting a further upside.
Medicare Group: Short-Term – Uptrend
MCGS cleared the resistance of QR79.90 and reached an all-time
high. With volumes picking up as well, it seems potential buyers are
stepping in. The stock has been experiencing strong gains in the past
few days and is in an uptrend mode. Meanwhile, the RSI is moving
strongly into the overbought territory, while the MACD is diverging
away in a bullish manner. Thus, the current prognosis implies that the
stock may continue its rally and tag new highs.
Vodafone Qatar: Short-Term – Uptrend
VFQS surged 9.99% and breached its resistances of QR14.03 and
QR14.23, after consolidating below over the past few days. Moreover,
the stock developed a bullish Marubozu candle pattern, indicating it
may likely to extend this rally further. We believe the stock is trending
strong and further spike in volumes indicate that VFQS may continue
to accelerate, tagging new highs. Meanwhile, both the indicators are
pointing upward 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
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) 12,453.86 UP UP 12,300.00 12,216.75 12,513.65 12,627.32
Al Rayan Islamic Index (QERI Index) 4,042.57 UP UP 4,027.12 4,000.00 4,070.00 4,100.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD)* 44.60 UP UP 44.15 43.50 46.00 47.50
Commercial Bank of Qatar (CBQK QD) 68.70 UP UP 68.40 65.75 70.00 71.50
Doha Bank (DHBK QD) 62.90 UP UP 61.50 60.00 63.30 64.50
Qatar Islamic Bank (QIBK QD) 81.70 UP UP 80.20 78.80 82.00 82.40
Qatar International Islamic Bank (QIIK QD) 82.00 UP UP 80.70 78.90 83.00 83.50
Qatar Insurance (QATI QD) 75.00 UP UP 74.80 72.40 76.00 77.50
Al Khalij Commercial Bank (KCBK QD) 23.19 UP UP 22.90 21.49 23.50 24.40
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD)* 81.50 UP UP 79.90 79.00 83.00 84.50
Al Meera Consumer Goods Co. (MERS QD) 182.00 UP UP 175.00 164.00 182.00 185.00
Industries Qatar (IQCD QD) 182.00 DOWN DOWN 181.40 180.00 183.00 184.50
Qatar Electricity & Water Co. (QEWS QD) 183.00 UP UP 180.00 178.20 185.00 190.00
Gulf International Services (GISS QD) 91.70 UP UP 90.00 86.60 93.00 94.50
Qatari Investors Group (QIGD QD) 60.80 UP UP 58.00 56.20 61.30 64.70
Barwa Real Estate Co. (BRES QD) 37.10 UP UP 36.80 35.80 37.40 38.40
United Development Co. (UDCD QD)* 23.12 UP UP 23.00 22.66 23.42 24.40
Ooredoo (ORDS QD) 148.00 UP UP 145.30 143.50 149.00 151.00
Vodafone Qatar (VFQS QD)* 15.41 UP UP 14.23 14.03 16.50 17.00
Nakilat (QGTS QD) 21.91 UP UP 21.15 20.90 22.19 22.50
Milaha (QNNS QD) 97.00 UP UP 96.50 95.10 98.30 100.10