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4TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index continued its bull run for the fifth session in a row to
record another all-time high of 14,246.91, but later trimmed its gains
to close at 14,165.05, as traders opted to book profits. The index has
been registering strong gains over the past few days and is in the
uptrend mode. Moreover, both the momentum indicators remain in
the positive territory, indicating the index may rally further to tag new
highs. Conversely, 14,135.0 could act as an immediate support.
Milaha: Short-Term – Pullback
QNNS has been struggling to surpass its stiff resistance of QR97.80
over the past few days. Moreover, the stock moved lower and
developed a bearish Marubozu candle formation, indicating a likely
continuation of this pullback. We believe although the stock is sitting
exactly on its support of QR96.50, it is unlikely to hold onto it and drift
lower to test QR95.10, which is also in proximity to the 21-day moving
average. Meanwhile, the RSI has shown a negative slope.
Al Rayan Islamic Index: Short-Term – Neutral
The QERI Index snapped its seven-day winning streak and ended the
session in red with a cut of around 8 points (-0.16%) on the back of
profit-booking. However, the upmove in the index remains intact. The
index has its immediate support at 4,770.0. The bulls may continue to
dominate the bears and push the index higher, as long as it stays
above 4,770.0. However, any retreat below 4,770.0 may result in a
pullback and could drag the index down toward 4,750.0.
Qatar Islamic Bank: Short-Term – Bounce Back
QIBK breached the resistance of its 21-day moving average after
consolidating below it over the past few days, which is a positive
development. The 21-day moving average becomes the key area to
watch out for traders, as any drop below this level may indicate a
false rebound. Meanwhile, the stock may test QR121.0 in the near-term,
if it manages to sustain above the 21-day moving average.
Further, the RSI in the buy zone supports this bullish sentiment.
Qatar Electricity & Water Co.: Short-Term – Upmove
QEWS cleared the QR192.0 level on Tuesday and advanced further
yesterday to move above the important resistance of the ascending
pennant, thus confirming its upmove. The stock is now gradually
approaching its next resistance of QR194.0. Any move above this
level may spark additional buying interest and push the stock further
toward QR196.0. However, a dip below QR192.0 may pull the stock
down. Meanwhile, the RSI is moving up in a bullish manner.
Barwa Real Estate Co.: Short-Term – Pullback
BRES failed to make further headway above QR42.50 and declined
to breach its important support of QR41.80. Moreover, the stock
developed a bearish Marubozu candle formation, which has bearish
implications. Further, both the momentum indicators are moving down
in a bearish manner, indicating weakness. We believe the stock may
continue to drift lower and test the 21-day moving average. However,
a close above QR41.80 may provide some relief.

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) 14,165.05 UP UP 14,135.50 14,102.54 14,246.91 14,300.00 Al Rayan Islamic Index (QERI Index) 4,801.53 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)
56.50
UP
UP
55.80
54.00
57.30
58.20 Commercial Bank of Qatar (CBQK QD) 73.10 UP UP 72.40 70.70 74.30 75.00
Doha Bank (DHBK QD)
62.30
UP
UP
62.00
61.00
63.30
64.50 Qatar Islamic Bank (QIBK QD)* 119.20 UP UP 117.40 115.00 119.90 121.00
Qatar International Islamic Bank (QIIK QD)
94.00
UP
UP
93.50
91.50
96.00
97.50 Qatar Insurance (QATI QD) 98.50 DOWN UP 98.00 97.00 99.00 100.00
Al Khalij Commercial Bank (KCBK QD)
23.16
UP
UP
22.85
22.49
23.23
23.50 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
129.30
DOWN
UP
128.80
126.50
131.40
135.20
Al Meera Consumer Goods Co. (MERS QD)
187.00
DOWN
UP
185.00
183.00
187.80
190.00 Industrials
Industrials
Industries Qatar (IQCD QD)
195.50
UP
UP
194.60
193.50
196.20
198.00 Qatar Electricity & Water Co. (QEWS QD)* 193.00 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) 61.30 UP UP 61.30 60.60 62.40 64.70 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)*
41.75
UP
UP
41.00
40.20
41.80
42.50 United Development Co. (UDCD QD) 29.60 UP UP 29.50 29.05 30.00 30.45 Telecom
Telecom
Ooredoo (ORDS QD)
135.00
UP
UP
134.00
132.00
135.90
138.50 Vodafone Qatar (VFQS QD) 22.22 UP UP 21.97 21.40 22.30 22.80 Transportation
Transportation
Nakilat (QGTS QD)
24.97
UP
UP
24.90
24.45
25.30
25.90 Milaha (QNNS QD)* 96.50 UP UP 96.50 95.10 97.80 98.80