1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
The QE Index ended the volatile session in the green with a gain of
around 30 points (0.22%) to settle above the 13,750.0 mark. The
index momentarily penetrated below 13,700.0; however, it recouped
all its losses for the day and bounced back staging a smart rally.
Meanwhile, the index faces its psychological resistance at 13,800.0,
whereas strong support is seen near 13,700.0. A move above or
below these levels may decide the next direction of the index.
Gulf International Services: Short-Term – Upmove
GISS surpassed the important resistances of QR124.10, the 21-day
moving average and the descending trendline, which had restricted its
bullish move in the past in a single swoop. We believe this strong
breach of resistances has bullish implications and provides an upside
target of QR125.50, followed by QR127.0. However, any dip below
the 21-day moving average, may indicate a false breakout.
Meanwhile the RSI is supporting this positive sentiment.
Al Rayan Islamic Index: Short-Term – Neutral
The QERI Index rebounded and rose around 15 points (0.32%) to
close the day at 4,674.79. The index witnessed a gap-up opening and
cleared its important resistance of 4,673.0, thus keeping its upward
hopes alive. However, the index needs to sustain above 4,673.0 in
order to advance toward 4,700.0. Any decline below 4,673.0 may pull
the index down to test 4,650.0. Traders are advised to remain on the
sidelines until the index gets further clarity on its direction.
Qatar International Islamic Bank: Short-Term – Pullback
QIIK failed to make any further headway above QR90.50 and moved
down yesterday. The stock has been moving along the descending
trendline over the past few days and is experiencing a steady decline.
We believe the stock may continue to drift lower, until it trades below
the descending trendline and penetrates below QR89.0 targeting
QR87.80. Meanwhile, the RSI is pointing down, while the MACD is
growing in a bearish manner, indicating weakness.
Qatar Insurance: Short-Term – Upmove
QATI finally moved above its resistances of the 21-day moving
average and QR99.0 after going through a consolidation phase for
the past few weeks. Notably, volumes were also large on the rise
indicating optimism among traders. With the RSI showing a bullish
divergence, we believe the stock may further proceed ahead toward
QR100.0. However, any retreat below the 21-day moving average
may drag the stock back into the congestion zone.
Qatar Electricity and Water Co.: Short-Term – Pullback
QEWS has been registering lower lows on the charts since topping
the current rally at QR196.50. Moreover, the stock developed a
bearish Marubozu candlestick formation on the daily charts, indicating
a likely continuation of this pullback. We believe although the stock is
trading close to its immediate support of QR188.0, it is unlikely to cling
onto it and decline further to test the 55-day moving average.
Meanwhile, both the indicators are providing bearish signals.

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) 13,758.55 DOWN UP 13,753.36 13,700.00 13,800.00 13,847.11 Al Rayan Islamic Index (QERI Index) 4,674.79 DOWN UP 4,672.95 4,650.00 4,707.59 4,750.00 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
55.60
DOWN
FLAT
55.00
54.00
55.80
57.30 Commercial Bank of Qatar (CBQK QD) 71.50 DOWN UP 70.70 69.80 71.50 72.40
Doha Bank (DHBK QD)
58.40
DOWN
DOWN
58.00
56.20
59.20
59.90 Qatar Islamic Bank (QIBK QD) 112.90 DOWN DOWN 111.00 110.00 113.00 115.00
Qatar International Islamic Bank (QIIK QD)*
89.00
DOWN
FLAT
89.00
87.80
90.50
91.50 Qatar Insurance (QATI QD)* 99.40 UP UP 99.00 97.50 100.00 101.90 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
130.50
FLAT
UP
128.80
126.50
131.50
132.50 Industrials
Industrials
Industries Qatar (IQCD QD)
189.00
DOWN
UP
188.50
186.40
190.00
191.00 Qatar Electricity & Water Co. (QEWS QD)* 188.00 DOWN FLAT 188.00 186.00 190.00 192.00
Gulf International Services (GISS QD)*
125.00
DOWN
UP
124.10
122.50
125.50
127.00 Qatari Investors Group (QIGD QD) 58.10 DOWN UP 57.70 56.20 59.00 60.60 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)
41.45
FLAT
UP
41.00
40.20
41.80
42.50 United Development Co. (UDCD QD) 28.80 DOWN DOWN 28.70 28.45 29.05 29.50
Ezdan Holding Group (ERES QD)
21 20.84342
UP
UP
20.60
20.04
21.00
21.45 Mazaya Qatar Real Estate Development (MRDS QD) 23.99 DOWN FLAT 23.90 23.50 24.25 24.50 Telecom
Telecom
Ooredoo (ORDS QD)
132.50
DOWN
FLAT
132.00
129.70
134.00
135.90 Vodafone Qatar (VFQS QD) 21.20 DOWN UP 21.10 20.79 21.40 21.97 Transportation
Transportation
Nakilat (QGTS QD)
24.17
DOWN
DOWN
23.90
23.50
24.20
24.45 Milaha (QNNS QD) 94.80 DOWN DOWN 94.50 92.90 95.10 96.50