1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Bounce Back
Al Rayan Islamic Index: Short-Term – Bounce Back
Commercial Bank of Qatar: Short-Term – Bounce Back
The QE Index moved higher around 24 points (0.23%) and continued
its uptrend on Thursday to close at 9,976.21. The index has been
steadily moving higher over the past few days; poised to test the
10,000.0 psychological level as it has strong momentum going in.
Moreover, the index has support for a further higher move from the
RSI which is moving up in a strong manner, while the MACD is
diverging away from the signal line in a bullish manner.
The QERI Index rose by around 5 points (0.15%) to close at
2,846.85. The index is gradually proceeding toward the 2,853.61
level. We believe the index is showing strength and there are
currently no imminent trend reversal signs. Moreover, the RSI and the
MACD lines are providing bullish signals indicating that the index has
enough steam to accelerate further. Conversely, a dip below 2,835.40
may result in the index going back into the congestion zone.
CBQK moved higher around 1.19% and surpassed the resistances of
QR67.90 as well as the descending trendline in a single swoop.
Moreover, the stock moved above the descending trendline which
had restricted its bullish move in the past. We believe the current
higher push may surpass the resistance of the 55-day moving
average, targeting QR68.60. Both indicators appear strong for a
higher move.
Milaha: Short-Term – Bounce Back
Qatar Insurance: Short-Term – Bounce Back
Vodafone Qatar: Short-Term – Bounce Back
QNNS continued its strong uptrend and tagged another new all-time
high on Thursday. QNNS is persistently tagging new-all time highs
over the past few days on the back of large volumes, indicating that
this rally may not fizzle out soon. We believe based on the current
higher push the stock is poised to tag a new high. Moreover, both
indicators are in uptrend mode showing no immediate trend reversal
signs. However, a dip below QR88.50 may halt its upmove.
QATI cleared the resistance of QR64.60 and the ascending trendline
on the back of large volumes. This strong breach of resistance has
bullish implications. Moreover, based on the current bullish move the
upside target is estimated to be near QR66.0. With the RSI trending
strong in the overbought territory and the MACD moving up further,
QATI’s preferred direction seems to be toward an upside. However, a
dip below the QR64.90 level may indicate a false breakout.
VFQS breached above the resistances of the descending trendline
and QR9.14 for the first time since August, thus managing to move
above the congestion zone on the back of large volumes. Moreover,
the stock developed a bullish Marubozu Candle pattern indicating that
the stock may advance to test and surpass QR9.23 targeting QR9.30.
In addition, the RSI has shown a bullish divergence indicating a good
buying opportunity at the current level.
Page 1 of 2

2. Name (Ticker)
Last Close
Trend
Short Term
Support
Long Term
First
Resistance
Second
First
Second
Qatar Exchange Index (QE Index)
9,976.21
UP
UP
9,800.00
9,700.00
10,200.00
10,350.00
Al Rayan Islamic Index (QERI Index)
2,846.85
UP
UP
2,700.00
2,600.00
2,950.00
3,000.00
Masraf Al Rayan (MARK QD)
30.05
UP
UP
24.00
23.20
31.40
33.00
Commercial Bank of Qatar (CBQK QD)*
68.00
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.50
UP
UP
42.00
39.50
57.14
58.00
Qatar Islamic Bank (QIBK QD)
69.00
UP
FLAT
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
58.20
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)*
65.00
UP
UP
58.50
57.00
66.30
67.15
National Leasing Holding Co. (NLCS QD)
30.10
DOWN
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
47.50
DOWN
DOWN
47.50
46.70
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
134.90
DOWN
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
163.30
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
160.30
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.90
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
31.95
UP
UP
20.36
20.00
32.30
33.50
Barwa Real Estate Co. (BRES QD)
27.00
UP
UP
22.80
19.50
29.25
29.90
United Development Co. (UDCD QD)
22.60
UP
UP
17.06
16.00
25.30
25.90
137.40
DOWN
DOWN
108.00
98.10
146.00
148.00
9.22
UP
UP
8.50
8.24
9.98
10.20
Nakilat (QGTS QD)
19.59
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)*
88.90
UP
UP
58.20
56.70
89.70
90.25
Banks and Financial Services
Consumer Goods and Services
Consumer G
Industrials
Industrials
Real Estate
Real Estate
Telecom
Ooredoo (ORDS QD)
Vodafone Qatar (VFQS QD)*
Telecom
Transportation
Transportat
*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 55day 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.
Contacts
Saugata Sarkar
Ahmed M. Shehada
Keith Whitney
Sahbi Kasraoui
QNB Financial Services SPC
Head of Research
Tel: (+974) 4476 6534
saugata.sarkar@qnbfs.com.qa
Head of Trading
Tel: (+974) 4476 6535
ahmed.shehada@qnbfs.com.qa
Head of Sales
Tel: (+974) 4476 6533
keith.whitney@qnbfs.com.qa
Manager - HNWI
Tel: (+974) 4476 6544
sahbi.alkasraoui@qnbfs.com.qa
Contact Center: (+974) 4476 6666
PO Box 24025
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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