1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Bounce Back
Al Rayan Islamic Index: Short-Term – Bounce Back
Qatari Investors Group: Short-Term – Bounce Back
The QE Index continued its uptrend tagging another new 52-week
high for the second consecutive day on Thursday. The index
breached 10,200.0 for the first time since 2008 as bulls were in full
control. We believe the index may continue its bullish run and start a
new wave toward 10,300.0 as it has strong momentum in its favor.
Moreover, the index has support for a higher move from both
momentum indicators, which are moving up in a bullish manner.
The QERI Index gained around 1.14% and tagged a new all-time
high, surpassing its previous best of 2,905.61 back in June. The index
cleared the 2,900.0 level and continued its strong momentum. We
believe, based on the momentum of the current higher move, the
index is poised to tag a new high. Moreover, the RSI is moving
strongly in the overbought territory, while the MACD is in an uptrend
mode thus providing the index an upward bias.
QIGD surged around 7.16% and penetrated above the resistances of
QR33.50 and QR35.0 in a single swoop. Moreover, the stock moved
above this level for the first time since 2008 and tagged a new 52week high. The gains were supported by increased volumes
indicating that potential buyers are stepping in. We believe, based on
the current momentum, the stock may test and surpass QR35.90
targeting QR36.50. Both indicators have shown a bullish divergence.
Barwa Real Estate Co.: Short-Term – Bounce Back
United Development Co.: Short-Term – Bounce Back
Industries Qatar: Short-Term – Bounce Back
BRES cleared the resistance of QR27.35 after feigning a failure on
Wednesday and moved above the congestion zone for the first time
since June, on Thursday. Moreover, the stock developed a bullish
Marubozu Candle pattern indicating a likely advance from the current
level. We believe the stock may now march toward QR27.65.
Meanwhile, both indicators are stalling from the declining mode.
However, a dip below QR27.35 may indicate a false breakout.
UDCD penetrated above the resistance of QR23.15 and made further
headway on Thursday. We believe, as long as the stock trades above
QR23.15, the short-term uptrend may remain intact and a rise toward
QR23.55 could be possible. Moreover, with the RSI moving up
toward the overbought territory and the MACD growing more bullish,
UDCD’ preferred direction seems to be on the upside. However,
traders may keep a close watch on QR23.15 for any reversal signs.
IQCD breached the resistances of QR165.0 and QR166.50 in a
single trading session. The recent price action indicate that IQCD may
continue pushing the price higher toward QR169.0 as there is not
much resistance on the upside until then. Moreover, the RSI and the
MACD are providing bullish signals indicating that the stock has
enough steam to accelerate further. However, a decline below
QR166.50 on a closing basis may 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)
10,212.40
UP
UP
9,800.00
9,700.00
10,300.00
10,450.00
Al Rayan Islamic Index (QERI Index)
2,922.25
UP
UP
2,800.00
2,715.00
2,950.00
3,000.00
Masraf Al Rayan (MARK QD)
31.65
UP
UP
24.00
23.20
31.90
33.00
Commercial Bank of Qatar (CBQK QD)
69.80
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.80
UP
UP
42.00
39.50
57.14
58.00
Qatar Islamic Bank (QIBK QD)
68.30
UP
DOWN
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
58.60
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)
65.90
UP
UP
58.50
57.00
66.30
67.15
National Leasing Holding Co. (NLCS QD)
31.15
UP
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
48.60
DOWN
DOWN
47.50
46.70
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
134.20
DOWN
FLAT
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)*
167.40
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
166.20
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
59.20
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)*
35.15
UP
UP
20.36
20.00
36.50
37.25
Barwa Real Estate Co. (BRES QD)*
27.40
UP
UP
22.80
19.50
29.25
29.90
United Development Co. (UDCD QD)*
23.37
UP
UP
17.06
16.00
25.30
25.90
138.10
FLAT
DOWN
108.00
98.10
146.00
148.00
9.80
UP
UP
8.50
8.24
9.98
10.20
Nakilat (QGTS QD)
19.57
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
87.50
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
Transporta
*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
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