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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index after pausing for just a single day on Tuesday
continued its relentless rally to close at its intraday high of 12,375.03
on the back of large volumes, indicating a further upside strength.
The index comfortably breached the 12,200.0 and 12,300.0
psychological levels for the first time since 2008. We believe the
index is in bullish mode and may continue to proceed ahead targeting
the 12,400.0-12,450.0 levels. Both indicators look strong.
Qatar International Islamic Bank: Short-Term – Upmove
QIIK surpassed the resistances of QR75.80 and QR77.30 in a single
trading session. We believe this strong breach of resistances has
bullish implications and provides an upside target of QR79.72. Any
move above this level may spark additional buying interest, which
may push the stock to test the QR81.50 level. However, any dip
below QR77.30 may result in a false breakout. Meanwhile, both the
RSI and the MACD lines are favoring a further advance.
Al Rayan Islamic Index: Short-Term – Uptrend
The QERI index continued its phenomenal run and surged 2.55% for
the twelfth consecutive session on the back of large volumes.
Moreover, the index has been consistently tagging new highs and is
showing no immediate trend reversal signs. Meanwhile, the RSI’s
perpetual overbought territory doesn’t seem to be affecting the index’s
uptrend mode, while the MACD continues to grow in a bullish
manner. Both indicators support the index for a higher move.
United Development Co.: Short-Term – Upmove
UDCD breached the resistances of QR21.69 and QR22.0 for the first
time since January, which is a positive sign. With volumes also
picking up it seems that potential buyers are stepping in. The stock
has been gaining strength since moving above the 21-day moving
average. The stock faces its immediate resistance of QR22.38. With
both the indicators pointing higher, it seems UDCD may be ready for
a move above this level and may advance further to test QR22.66.
Commercial Bank of Qatar: Short-Term – Upswing
CBQK cleared the resistances of QR65.75 and QR67.50 after
consolidating below it over the past few days, and surged 4.27%
tagging a 52-week high. The recent price action and rising volumes
indicate that CBQK will likely continue pushing the price toward
QR70.0, followed by QR71.90. Meanwhile, the RSI is going strongly
in the overbought territory, while the MACD is diverging away from the
signal line on the upside indicating continued strength.
Qatar Electricity & Water Co. : Short-Term – Uptrend
QEWS moved higher above the QR180.0 level and tagged a new all-
time high after consolidating below it over the past few days.
Moreover, the stock developed a bullish Marubozu candle pattern
indicating a likely continuation of this rally. With both indicators
providing bullish signals, QEWS’ preferred direction seems to be on
the upside, thus reinforcing our bullish technical outlook for the stock.
However, QR180.0 must be closely watched for any 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
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) 12,375.03 UP UP 12,300.00 12,216.75 12,450.00 12,513.25
Al Rayan Islamic Index (QERI Index) 3,949.44 UP UP 3,900.00 3,877.63 4,000.00 4,030.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD) 43.85 UP UP 42.00 40.00 45.00 48.00
Commercial Bank of Qatar (CBQK QD)* 68.30 UP UP 67.50 65.75 70.00 71.90
Doha Bank (DHBK QD) 61.90 UP DOWN 59.23 58.20 63.30 64.50
Qatar Islamic Bank (QIBK QD) 77.00 UP UP 76.00 75.00 77.20 78.00
Qatar International Islamic Bank (QIIK QD)* 78.30 UP UP 77.30 75.80 79.72 81.50
Qatar Insurance (QATI QD) 74.10 UP UP 72.40 71.00 75.00 76.50
Al Khalij Commercial Bank (KCBK QD) 22.65 UP UP 21.80 21.50 23.00 23.30
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD) 79.00 UP UP 76.40 75.40 79.00 80.00
Al Meera Consumer Goods Co. (MERS QD) 179.60 UP UP 175.00 164.00 182.00 185.00
Industries Qatar (IQCD QD) 186.00 UP UP 181.40 178.30 187.50 190.00
Qatar Electricity & Water Co. (QEWS QD)* 182.00 UP UP 180.00 178.20 185.00 190.00
Gulf International Services (GISS QD) 92.80 UP UP 90.00 86.60 93.00 95.00
Qatari Investors Group (QIGD QD) 59.70 UP UP 58.00 56.20 61.30 64.80
Barwa Real Estate Co. (BRES QD) 37.70 UP UP 36.80 35.70 38.40 39.20
United Development Co. (UDCD QD)* 22.29 UP UP 22.00 21.69 22.38 22.66
Ooredoo (ORDS QD) 150.00 UP DOWN 149.00 145.30 151.00 153.80
Vodafone Qatar (VFQS QD) 13.93 UP UP 12.99 12.66 14.00 14.23
Nakilat (QGTS QD) 21.11 UP DOWN 20.90 20.50 21.15 21.83
Milaha (QNNS QD) 97.00 UP UP 96.50 95.10 98.40 100.10