1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index extended its winning streak for the fourth straight
session and scaled a new peak. However, the index trimmed its
gains after reaching 14,225.39, as traders opted to book profits.
Meanwhile, the bias remains positive for the index, as the RSI
continues to be in the buy zone and the MACD remains in the bullish
territory. On the flip side, the index may find support at the 14,100.0
and 14,050.0 levels.
Al Meera Consumer Goods Co.: Short-Term – Pullback
MERS failed to make any headway above the descending trendline,
and penetrated below both the supports of the 21-day moving
average and QR187.80 in a single swoop. Moreover, the stock
developed a bearish Marubozu candlestick formation, indicating a
likely continuation of this pullback toward QR185.0. Further, both the
indicators are pointing down, suggesting weakness. However, a close
above QR187.80 may provide some relief.
Al Rayan Islamic Index: Short-Term – Upmove
The QERI Index continued its northbound journey for the seventh
consecutive session and advanced 0.45% to settle above the 4,800.0
mark. The index has been moving along the ascending trendline and
is registering strong gains over the past few days. We believe based
on the current momentum the index may proceed toward 4,850.0, as
it has support from the strengthening RSI. Conversely, 4,800.0 and
4,770.0 may act as immediate support levels for the index.
Vodafone Qatar: Short-Term – Upmove
VFQS gained 1.33% to convincingly clear the important resistance of
QR21.97 after feigning a failure in the past few attempts. We believe
based on the price action and spike in volumes the stock may rally
further toward QR22.30, followed by QR22.80. Moreover, the RSI is
moving in a bullish manner, which supports this positive sentiment.
However, traders may need to exercise caution if the stock slips
below QR21.97, as it may drag the stock down.
Qatar International Islamic Bank: Short-Term – Upswing
QIIK advanced 1.84% and cleared the key resistance of QR93.50 to
tag a 5-year high. Notably, volumes were also large on the rise,
indicating rising optimism among traders. Moreover, the stock formed
a sizable bullish candlestick pattern on daily charts, suggesting a
continuation of this upmove. We believe the stock may march ahead
and test the QR96.0 level. However, a retreat below QR93.50 may
pull the stock down. Meanwhile, both the indicators look strong.
Industries Qatar: Short-Term – Pullback
IQCD has been facing stiff resistance at QR194.60 and has failed to
close above it, even after repeated failed attempts. Therefore, the
QR194.60 level is a hurdle that the stock must clear on a closing
basis to advance further. Until then, IQCD may drift lower. We believe
this continuous respect may result in a pullback and the stock may
test QR193.50. However, if the stock manages to close above
QR194.60, it may attract buying interest.

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 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.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
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 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. Name (Ticker) Last Close Trend Support Resistance
Short Term
Long Term
First
Second
First
Second Qatar Exchange Index (QE Index) 14,137.67 UP UP 14,100.00 14,050.00 14,225.39 14,300.00 Al Rayan Islamic Index (QERI Index) 4,809.05 UP UP 4,800.00 4,770.31 4,811.58 4,850.00 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
56.60
UP
UP
55.80
54.00
57.30
58.20 Commercial Bank of Qatar (CBQK QD) 73.30 UP UP 72.40 70.70 74.30 75.00
Doha Bank (DHBK QD)
62.10
UP
UP
62.00
61.00
63.30
64.50 Qatar Islamic Bank (QIBK QD) 118.50 DOWN UP 117.40 115.00 119.90 123.70
Qatar International Islamic Bank (QIIK QD)*
94.00
UP
UP
93.50
91.50
96.00
97.50 Qatar Insurance (QATI QD) 98.70 DOWN UP 98.00 97.00 100.00 101.00
Al Khalij Commercial Bank (KCBK QD)
23.40
UP
UP
23.23
22.85
23.50
24.00 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
130.80
DOWN
UP
128.80
126.50
131.40
135.20
Al Meera Consumer Goods Co. (MERS QD)*
187.50
DOWN
UP
185.00
183.00
187.80
190.00 Industrials
Industrials
Industries Qatar (IQCD QD)*
194.50
UP
UP
193.50
192.10
194.60
198.00 Qatar Electricity & Water Co. (QEWS QD) 192.20 UP UP 192.00 190.00 194.00 196.00
Gulf International Services (GISS QD)
125.00
UP
UP
124.10
122.50
127.00
129.80 Qatari Investors Group (QIGD QD) 61.40 UP UP 61.30 60.60 62.40 64.70 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)
42.35
UP
UP
41.80
41.00
42.50
42.75 United Development Co. (UDCD QD) 29.75 UP UP 29.50 29.05 30.00 30.45 Telecom
Telecom
Ooredoo (ORDS QD)
134.50
UP
UP
134.00
132.00
135.90
138.50 Vodafone Qatar (VFQS QD)* 22.11 UP UP 21.97 21.40 22.30 22.80 Transportation
Transportation
Nakilat (QGTS QD)
24.92
UP
UP
24.90
24.45
25.30
25.90 Milaha (QNNS QD) 97.50 UP UP 96.50 95.10 97.80 98.80