1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Bounce Back
Al Rayan Islamic Index: Short-Term – Bounce Back
Masraf Al Rayan: Short-Term – Bounce Back
The QE Index after consolidating for just a single day on Sunday
continued its upmove and rose by around 71 points (0.71%) to close
at 10,046.57. Moreover, the index breached the 10,000.0
psychological level for the first time since August as bulls were in full
control. We believe the index may now continue its bullish
momentum and move higher targeting the 10,100.0 level. In addition,
both indicators are signifying an upside move.
The QERI Index cleared the resistance of the upper end of the
channel near 2,871.69 and rallied higher around 20 points (0.68%) to
close the session at 2,875.06. The index has been witnessing strong
gains over the past few days and is in uptrend mode. We believe the
current higher push has enough steam to test the August high of
2,900.0. With the RSI moving higher, and the MACD rising further up
from the signal line, it seems the index may accelerate further.
MARK surpassed the key resistance of QR30.20 after consolidating
below it for multiple weeks. The stock has been in steady upmove
mode since experiencing a price rebound near the QR29.90 level. We
believe this strong breach of resistance at QR30.20 has bullish
implications and provides an upside target of QR31.40. Meanwhile,
the RSI is showing strength in the overbought territory, while the
MACD is moving upward in a bullish manner.
Commercial Bank of Qatar: Short-Term – Bounce Back
Qatari Investors Group: Short-Term – Bounce Back
Vodafone Qatar: Short-Term – Bounce Back
CBQK penetrated above the resistance of QR68.60 yesterday. The
recent price action and rising volumes are indicating that potential
buyers are stepping in. We believe the stock is moving strongly over
the past few days and now appears poised to test QR69.60.
Moreover, both the RSI and the MACD lines are providing bullish
signals suggesting an advance from the current level. However, a dip
below QR68.60 on a closing basis may indicate a false breakout.
QIGD after moving sideways above the QR31.65 level for a few days
moved higher around 2.84% and tagged a new 52-week high.
Notably, volumes were also large on the higher move indicating the
start of a short-term rally. We believe the stock may now march
toward the QR33.0 level. If the stock penetrates above this level, it
may spark additional buying interest and test the QR33.60 level.
However, traders must watch out for QR32.45 for any reversal signs.
VFQS breached the resistance of QR9.74 yesterday and has been
registering strong gains over the past few days. Given the strong
momentum indicators which are pointing higher, it looks like VFQS
may continue its upmove. We believe the stock may be ready for a
breakout above the QR9.90 level targeting the 2009 high of QR10.20
level. However, a retreat below the QR9.74 level on a closing basis
could halt its upmove.
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)
10,046.57
UP
UP
9,800.00
9,700.00
10,200.00
10,350.00
Al Rayan Islamic Index (QERI Index)
2,875.06
UP
UP
2,700.00
2,600.00
2,950.00
3,000.00
Masraf Al Rayan (MARK QD)*
30.85
UP
UP
24.00
23.20
31.40
33.00
Commercial Bank of Qatar (CBQK QD)*
69.00
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.40
UP
UP
42.00
39.50
57.14
58.00
Qatar Islamic Bank (QIBK QD)
68.50
DOWN
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
58.30
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)
30.50
DOWN
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
47.75
DOWN
DOWN
47.50
46.70
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
134.90
DOWN
FLAT
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
163.00
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
160.60
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.80
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)*
32.60
UP
UP
20.36
20.00
33.60
34.75
Barwa Real Estate Co. (BRES QD)
27.05
UP
UP
22.80
19.50
29.25
29.90
United Development Co. (UDCD QD)
22.93
UP
UP
17.06
16.00
25.30
25.90
137.00
DOWN
DOWN
108.00
98.10
146.00
148.00
9.84
UP
UP
8.50
8.24
9.98
10.20
Nakilat (QGTS QD)
19.61
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
89.00
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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