1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Pullback
The QE Index declined for the second straight session and fell
sharply around 387 points (-2.9%) to close below the 13,000.0
psychological level. The index witnessed sustained selling pressure
throughout the day, which dragged it below many important support
levels. Meanwhile, the bulls would be eager to see a pause at the
psychological support of 12,900.0. However, a continued weakness
below 12,900.0 may pull the index further down to test 12,770.0.
Industries Qatar: Short-Term – Pullback
IQCD has been experiencing sustained weakness since topping the
current rally at QR198.00. Moreover, the stock breached its supports
of QR180.00 and QR178.30 on the back of large volumes, which is a
negative sign. Further both the momentum indicators are providing
bearish signals. We believe the stock may continue on its decline and
move lower to test QR175.00. However, the stock may climb higher
toward QR180.00, if it manages to reclaim QR178.30.
Al Rayan Islamic Index: Short-Term – Pullback
The QERI Index continued its southbound journey and ended lower to
lose around 117 points (-2.6%). The index witnessed yet another
disappointing session, as it penetrated below its important supports of
4,445.0 and 4,400.0 in a single swoop. We believe the bears may
continue to dominate and further drag the index toward 4,341.0.
However, a close above 4,400.0 may attract buyers. Meanwhile, both
the indicators are in downtrend mode, indicating sustained weakness.
Mazaya Qatar Real Estate Dev.: Short-Term – Pullback
MRDS continued its losing streak and further breached its supports of
QR22.09 and QR21.20. The stock has been witnessing sustained
selling pressure over the past few days and is underperforming. With
both the momentum indicators showing weakness, MRDS’ preferred
direction seems to be on the downside. We believe the stock may
continue its decline and move further down toward QR20.83.
However, MRDS may get some relief, if it closes above QR21.20.
Commercial Bank of Qatar: Short-Term – Pullback
CBQK penetrated below its important supports of QR70.70, QR69.70
along with the 55-day moving average in a single trading session,
caving under selling pressure. Notably, volumes were also large on
the decline, providing a negative signal. With both the momentum
indicators pointing down, the stock may witness additional selling
pressure and dip down further below QR68.40, targeting QR67.30.
However, the stock may bounce-back if it stays above QR68.40.
Qatar Insurance: Short-Term – Pullback
QATI failed to make any further headway above the descending
trendline and dipped below its supports of QR99.0, QR97.0 and the
55-day moving average on the back of increased participation. We
believe this strong breach of supports has bearish implications, which
provides a downside target of QR94.60, followed by QR92.40.
Further, both the indicators are pointing down, supporting this bearish
sentiment. However, a move above QR96.58 may halt its pullback.

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) 12,942.00 DOWN DOWN 12,939.40 12,768.17 13,019.55 13,100.00 Al Rayan Islamic Index (QERI Index) 4,364.30 DOWN DOWN 4,341.10 4,301.89 4,400.00 4,444.86 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
51.30
DOWN
DOWN
50.40
48.50
51.80
52.80 Commercial Bank of Qatar (CBQK QD)* 68.60 DOWN DOWN 68.40 67.30 69.70 70.70
Doha Bank (DHBK QD)
56.10
DOWN
DOWN
55.80
54.90
57.00
58.00 Qatar Islamic Bank (QIBK QD) 109.00 DOWN DOWN 107.00 104.50 110.00 111.00
Qatar International Islamic Bank (QIIK QD)
83.50
DOWN
DOWN
84.90
83.00
85.90
87.80 Qatar Insurance (QATI QD)* 96.30 DOWN DOWN 94.60 92.40 97.00 98.00 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
123.30
DOWN
DOWN
121.50
118.20
126.50
128.80 Industrials
Industrials
Industries Qatar (IQCD QD)*
178.00
DOWN
DOWN
175.00
173.90
178.30
180.00 Qatar Electricity & Water Co. (QEWS QD) 179.50 DOWN DOWN 178.18 176.64 180.00 182.00
Gulf International Services (GISS QD)
110.00
DOWN
DOWN
109.00
104.50
111.90
115.00 Qatari Investors Group (QIGD QD) 52.00 DOWN DOWN 51.00 49.90 52.20 54.20 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)
39.00
DOWN
DOWN
38.40
37.40
39.20
39.70 United Development Co. (UDCD QD) 27.00 DOWN DOWN 26.70 26.45 27.35 27.85
Ezdan Holding Group (ERES QD)
18.44
DOWN
DOWN
18.10
17.50
18.97
19.36 Mazaya Qatar Real Estate Development (MRDS QD)* 21.00 DOWN DOWN 20.83 20.55 21.20 22.09 Telecom
Telecom
Ooredoo (ORDS QD)
125.70
DOWN
DOWN
124.50
123.70
126.00
128.00 Vodafone Qatar (VFQS QD) 19.89 DOWN DOWN 19.29 18.75 20.00 20.40 Transportation
Transportation
Nakilat (QGTS QD)
22.97
DOWN
DOWN
22.30
21.98
23.00
23.40 Milaha (QNNS QD) 93.40 DOWN DOWN 93.00 91.30 94.50 96.00