1. Page 1 of 2
TECHNICAL ANALYSIS: QSE INDEX AND KEY STOCKS TO CONSIDER
QSE Index: Short-Term – Neutral
The QSE Index fell around 32 points (-0.23%) to settle at 13,723.54.
The profit-booking for the second straight session led to a
disappointing performance, which dragged the index below the
supports of 13,753.0 and the 55-day moving average. On the
downside, the index has its psychological support at 13,700.0. The
index may bounce back if it stays above this level, or else it may
continue to drift lower. Meanwhile, both the indicators are stalling.
United Development Co.: Short-Term – Bounce Back
UDCD advanced 1.52% and cleared the resistances of QR26.50 and
the descending trendline, which had restricted its bullish move in the
past in a single swoop. We believe based on the current higher push
and spike in volumes, the stock has enough steam to surpass
QR26.85, which is also in proximity to the 21-day moving average
targeting QR27.35. However, a retreat below QR26.50 may pull the
stock down. Meanwhile, both the indicators are looking strong.
Al Rayan Islamic Index: Short-Term – Neutral
The QERI Index snapped its four-day winning streak and ended the
session marginally lower around 4 points (-0.09%). The index got off
to a positive start and momentarily moved above the resistance of
4,639.0, but reversed surrendering all its gains, on the back of profit-booking.
We believe the upmove in the index remains intact, until it
stays above the 4,600.0 and 4,585.0 levels. However, the bears will
have an upper hand if the index slips below these levels.
Barwa Real Estate Co.: Short-Term – Upswing
BRES gained 0.20% and continued its upswing tagging a fresh 52-
week high. The stock has been moving higher over the past few days
and is trending along the ascending channel. We believe the stock
may advance further toward QR51.25 as it has support from both the
momentum indicators, which are providing bullish signals. However,
traders may need to exercise caution, if the stock slips below the
QR48.88 level, as it may halt its upswing.
Gulf International Services: Short-Term – Pullback
GISS has been drifting lower since topping the current rally at
QR131.0. Moreover, the stock penetrated below the important
support of QR127.0 providing a bearish signal. Further, with the RSI
showing a negative slope and the MACD closing the signal line in a
bearish manner, we believe GISS could move lower and test
QR125.50 followed by QR124.10. Conversely, the stock may
rebound and attract buying interest if it moves above QR127.0.
Vodafone Qatar: Short-Term – Pullback
VFQS has been in declining mode since slipping below the 55-day
moving average. Moreover, the stock breached its important support
of QR19.29 after respecting it many times in the past on the back of
large volumes. Further both the momentum indicators are in
downtrend mode, showing no immediate trend reveral signs. Traders
could consider selling the stock at the current level for a target of
QR18.75 with a strict stop loss of QR19.29.

2. Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Head of Research Senior Research Analyst Senior Research Analyst Manager - HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@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 Stock 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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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 QSE 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 Stock Exchange Index (QSE Index) 13,723.54 UP FLAT 13,700.00 13,650.00 13,753.36 13,847.11 Al Rayan Islamic Index (QERI Index) 4,626.27 UP DOWN 4,600.00 4,584.50 4,638.81 4,672.95 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
50.20
DOWN
DOWN
49.60
48.50
50.40
51.80 Commercial Bank of Qatar (CBQK QD) 73.80 UP UP 73.40 72.50 74.30 75.00
Doha Bank (DHBK QD)
58.90
UP
DOWN
58.70
58.00
59.20
59.90 Qatar Islamic Bank (QIBK QD) 110.00 DOWN DOWN 109.00 107.00 110.00 111.00
Qatar International Islamic Bank (QIIK QD)
84.70
DOWN
DOWN
84.00
82.80
84.90
86.10 Qatar Insurance (QATI QD) 96.10 DOWN DOWN 95.30 94.60 97.00 98.00 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
126.50
UP
DOWN
124.75
121.50
126.50
128.80 Industrials
Industrials
Industries Qatar (IQCD QD)
196.00
UP
UP
194.60
193.50
196.50
198.00 Qatar Electricity & Water Co. (QEWS QD) 188.20 UP FLAT 188.00 186.00 190.00 192.00
Gulf International Services (GISS QD)*
126.00
UP
UP
125.50
124.10
127.00
128.30 Qatari Investors Group (QIGD QD) 48.80 DOWN DOWN 47.70 46.90 48.90 49.75 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)*
50.10
UP
UP
48.88
47.30
51.25
52.30 United Development Co. (UDCD QD)* 26.80 FLAT DOWN 26.50 26.10 26.85 27.35
Ezdan Holding Group (ERES QD)
19.06
DOWN
DOWN
18.97
18.55
19.36
19.50 Mazaya Qatar Real Estate Development (MRDS QD) 24.44 UP DOWN 24.25 23.89 24.50 24.75 Telecom
Telecom
Ooredoo (ORDS QD)
120.10
DOWN
DOWN
118.80
117.70
120.50
121.40 Vodafone Qatar (VFQS QD)* 19.00 DOWN DOWN 18.75 18.20 19.29 19.72 Transportation
Transportation
Nakilat (QGTS QD)
24.40
UP
FLAT
24.12
23.90
24.45
24.61 Milaha (QNNS QD) 103.40 UP UP 102.00 101.10 104.00 105.80