1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Doha Bank: Short-Term – Downmove
The QE index moved lower on Thursday and closed below its
support level of 11,170. The next immediate support is seen at
11,080. The MACD has given a negative crossover signal, while the
RSI has started to retreat from the overbought zone. Thus, with both
technical indicators suggesting a bearish trend, the index is likely to
move lower from the current levels. On the flip side, a close above
the 11,170 level may indicate a trend reversal.
The QERI index was unable to break its resistance level of 3,240, and
retreated 0.78% to close at 3,216.71 on Thursday. The index has
support near the 3,200 level, below which, the next support is seen at
3,150. The technical indicators are suggesting a bearish trend, with
the RSI moving lower, and the MACD diverging on the negative side.
On the flip side, a close above the 3,240 level would indicate
continuation of the uptrend.
Doha Bank fell on Thursday to test its support of the 21-day moving
average (currently at QR63.53), but recovered from the lows to close
at QR64.0. A move below the 21-day moving average can take the
stock down to QR63.3, below which the next support is at QR62.20.
Both technical indicators are suggesting further downside in the stock.
On the flipside, a close above the QR64.80 level can take the stock to
QR66 level.
Al Meera Consumer Goods Co.: Short-Term – Breakout
Industries Qatar: Short-Term – Downmove
United Development Co.: Short-Term – Breakdown
MERS surged on Thursday, breaking out of its QR145.90 resistance
level on the back of strong volumes. The stock moved above the
QR150.00 level during the intraday, but moved back to close the day
at QR146.70. The MACD line has given a positive crossover signal,
while the RSI is trending higher in the overbought zone. The stock is
likely to move higher, with resistance seen at QR150 and then at
QR151.50 level. On the downside, support is at QR145.9.
IQCD witnessed a gap down opening on Thursday, and fell further to
close below its trend line support. The RSI has given a negative
divergence signal and has begun to retreat from the overbought zone.
The MACD has also given a negative crossover. The stock is likely to
move towards its support of QR178.3, below it which may move to
QR174.6 level. On the flip side, a close above the QR182.5 level,
would indicate that the uptrend is intact.
UDCD is currently trading below its 21-day moving average, which in
turn is below the 55-day moving average, indicating that the stock is in
downtrend currently. UDCD broke its support level of QR22.84 and
fell sharply to close at QR22.61. The RSI has been trending lower,
while the MACD has diverged from the signal line on the negative
side. The stock is likely to move towards its support of QR22.38,
below which it could fall to the QR22.0 level.
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)
11,155.73
FLAT
UP
11,080.00
11,000.00
11,170.00
11,300.00
Al Rayan Islamic Index (QERI Index)
3,216.71
FLAT
UP
3,199.21
3,150.00
3,240.37
3,270.00
Masraf Al Rayan (MARK QD)
34.70
UP
UP
34.15
33.50
35.00
36.00
Commercial Bank of Qatar (CBQK QD)
71.90
DOWN
UP
70.90
70.20
71.80
72.80
Doha Bank (DHBK QD)*
64.00
DOWN
UP
63.30
62.21
64.80
66.00
Qatar Islamic Bank (QIBK QD)
74.90
UP
UP
75.00
74.00
76.00
77.00
Qatar International Islamic Bank (QIIK QD)
67.70
UP
UP
68.00
67.00
69.40
70.30
Qatar Insurance (QATI QD)
78.10
UP
UP
78.00
76.80
80.00
81.50
National Leasing Holding Co. (NLCS QD)
30.95
UP
FLAT
29.95
29.15
30.60
31.00
Widam Food Co. (WDAM QD)
51.00
DOWN
FLAT
51.00
50.20
51.90
53.00
Al Meera Consumer Goods Co. (MERS)*
146.70
UP
UP
145.90
142.70
150.00
151.50
Industries Qatar (IQCD QD)*
179.80
UP
UP
178.30
174.60
182.50
185.00
Qatar Electricity & Water Co. (QEWS QD)
181.50
UP
UP
182.50
180.00
184.00
186.00
Gulf International Services (GISS QD)
75.50
UP
UP
77.00
76.00
79.00
80.00
Qatari Investors Group (QIGD QD)
48.15
DOWN
UP
47.70
46.00
49.09
52.40
Barwa Real Estate Co. (BRES QD)
31.25
UP
UP
31.20
30.85
32.00
32.50
United Development Co. (UDCD QD)*
22.61
DOWN
DOWN
22.38
22.00
22.84
23.10
Ooredoo (ORDS QD)
149.00
UP
UP
149.00
145.90
151.00
153.00
Vodafone Qatar (VFQS QD)
11.42
UP
UP
11.19
11.00
11.60
12.09
Nakilat (QGTS QD)
20.82
FLAT
UP
20.74
20.50
21.07
21.32
Milaha (QNNS QD)
88.00
DOWN
FLAT
88.00
87.00
89.40
90.00
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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