1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Qatar International Islamic Bank: Short-Term – Bounce Back
The QE index rose by around 20 points (0.20%) to close the session
at 10,395.32. The index witnessed a gap-up opening and
momentarily moved above the psychological level of 10,400;
however, it pulled back as buyers backed away from higher prices.
We believe if the index manages to moves above 10,400 it may find
resistance near the lower end of the channel (currently at 10,460). On
the flip side, a decline below 10,360 may attract sellers.
The QERI Index penetrated the 3,036 level and closed the session at
3,039.38. The index is currently treading just below the resistance
level of 3,050. We believe if the index manages to close above this
level, it may attract further buying interest. On the flip side, if it fails to
hold above its support of 3,036, the index may slide further to test the
3,000 level. Meanwhile, both the RSI and MACD lines are moving
higher, indicating a positive outlook for the index.
QIIK successfully moved above QR60.10 and rose by 2.33% to close
at QR61.50. Moreover, the recent upward momentum in the stock
has been supported by increasing volume, indicating strong buying
interest in the stock. We believe if QIIK manages to breach QR62.00
it may move higher. Moreover, the RSI is moving upward, while the
MACD is diverging from the signal line in a bullish manner, supporting
a positive outlook for the stock.
Nakilat: Short-Term – Bounce Back
Qatar Insurance: Short-Term – Bounce Back
Widam Food Co.: Short-Term – Bounce Back
QGTS witnessed a gap-up opening yesterday and breached the
resistance level of QR21.07 to close the session at QR21.30. The
stock has tagged higher highs in the last three trading sessions, on
increasing volume, indicating the possibility of further upward
movement for the stock. We believe if QGTS penetrates QR21.40 it
may move higher toward QR21.70. Both the RSI and the MACD lines
are moving upward, supporting our bullish outlook for the stock.
QATI stock breached the QR66.50 level and rose by 1.5% to close
the session at QR67.50. Moreover, the stock developed a bullish
Marubozu Candle pattern, indicating strength to move further, and
test its next resistance level of QR68.00. With the RSI moving up and
the MACD diverging for the signal line in a bullish manner, QATI’s
preferred direction seems to be on the upside. However, if the stock
dips below the QR66.50 level it may attract sellers.
WDAM cleared the resistance of QR48.80, and closed the session at
QR49.00. Volumes were comparatively higher, indicating an upbeat
outlook for the stock. We believe if the stock manages to breach the
QR49.10 level, it may move higher toward the 55-day moving
average (currently at QR49.77) or else it may dip to test QR48.00.
Meanwhile, the RSI is moving upward, while the MACD is diverging
from the signal line in a bullish manner, indicating a positive outlook.
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)
10,395.32
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,039.38
UP
UP
2,900.00
2,800.00
3050.00
3,125.00
Masraf Al Rayan (MARK QD)
33.25
UP
UP
24.00
23.20
33.65
34.69
Commercial Bank of Qatar (CBQK QD)
68.90
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.50
UP
UP
42.00
39.50
58.15
59.20
Qatar Islamic Bank (QIBK QD)
69.60
UP
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)*
61.50
UP
UP
47.90
45.00
62.12
62.78
Qatar Insurance (QATI QD)*
67.50
UP
UP
58.50
57.00
69.10
70.00
National Leasing Holding Co. (NLCS QD)
31.35
UP
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)*
49.00
UP
DOWN
47.00
46.25
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.00
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
167.90
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
168.00
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
59.00
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
39.30
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)
30.00
UP
UP
22.80
19.50
30.50
30.85
United Development Co. (UDCD QD)
23.23
UP
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)
136.40
DOWN
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)
11.10
UP
UP
8.50
8.24
11.15
11.75
Nakilat (QGTS QD)*
21.30
UP
UP
15.08
14.52
21.70
22.80
Milaha (QNNS QD)
88.10
UP
UP
58.20
56.70
90.25
95.50
Banks and Financial Services
Banks and
Consumer Goods and Services
Consumer G
Industrials
Industrials
Real Estate
Real Estate
Telecom
Telecom
Transportation
Transportat
*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
viewpoints or make investment decisions that differ significantly from, or even contradict, the views and opinions included in this report.
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