1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Bounce Back
The QE Index gained for the second straight session and rose
around 103 points (0.76%) to close at its highest point of the day. The
index cleared the13,600.0 psychological level and further extended
its gains, with the bulls in control. Meanwhile, the index faces its next
important resistance near 13,750.0. Any move above this level may
result in a rally toward 13,850.0. On the flip side, 13,650.0 may act as
an intermediate support.
Medicare Group: Short-Term – Rebound
MCGS gained 1.92% and cleared the resistance of the descending
trendline, which had restricted its bullish move earlier. Moreover, the
stock ended in a small bullish candlestick formation on daily charts,
indicating the upmove may continue. Further, the RSI has shown a
positive divergence, supporting this bullish sentiment. We believe the
stock may proceed toward QR135.20. However, any retreat below
the trendline around QR131.40 may pull the stock lower.
Al Rayan Islamic Index: Short-Term – Bounce Back
The QERI Index advanced around 38 points (0.82%) and ended the
session in the green for the second consecutive day. The index
moved above the 4,708.0 level and gained further momentum, as the
bulls were back in action. We believe the index may continue its
positive momentum and test 4,770.0-4,800.0 levels, if it is able to
sustain above 4,708.0 on a closing basis. Conversely, the index could
find support near the 4,700.0 level.
Qatari Investors Group: Short-Term – Pullback
QIGD penetrated below the 21-day moving average for the first time
since August, after holding above it over the past few weeks. Further,
the RSI has shown a negative slope, while the MACD has crossed
the signal line into the negative territory. We believe the stock is
unlikely to cling onto its immediate support of QR58.0 and may drift
down further to test the 55-day moving average. Conversely, if the
stock manages to put its head above QR58.0, it may halt its pullback.
Masraf Al Rayan: Short-Term – Bounce Back
MARK rebounded on Sunday and extended its gains by rallying
around 2.90%. Moreover, the stock found support of its 21-day
moving average and cleared the resistance of QR55.80. Further, the
RSI has shown a bullish divergence, indicating strength in the
upmove. We believe the stock may march toward QR57.30.
However, traders may exercise caution if the stock slips below
QR55.80, which may drag it back into the congestion zone.
Gulf International Services: Short-Term – Pullback
GISS has been experiencing steady decline over the past few days
and continued to move lower yesterday. The stock has been facing
stiff resistance of the descending trendline and is underperforming.
We believe the stock needs to clear this hurdle of the descending
trendline in order to proceed ahead; until then GISS may continue to
drift lower and test its support of QR115.0. Meanwhile, both the
indicators are providing bearish signals, indicating weakness.

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) 13,699.51 UP UP 13,650.00 13,584.34 13,753.36 13,847.11 Al Rayan Islamic Index (QERI Index) 4,729.55 UP UP 4,707.59 4,638.81 4,770.31 4,811.58 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)*
56.90
UP
UP
55.80
54.00
57.30
58.00 Commercial Bank of Qatar (CBQK QD) 69.20 UP UP 68.90 68.30 69.50 70.00
Doha Bank (DHBK QD)
61.70
UP
UP
61.00
60.00
62.00
63.10 Qatar Islamic Bank (QIBK QD) 118.90 UP UP 117.40 115.00 120.00 122.00
Qatar International Islamic Bank (QIIK QD)
88.20
UP
UP
87.80
86.10
89.00
90.50 Qatar Insurance (QATI QD) 98.50 UP UP 97.00 96.00 99.00 100.00
Al Khalij Commercial Bank (KCBK QD)
22.10
FLAT
FLAT
22.00
21.49
22.35
22.50 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)*
132.50
UP
UP
131.40
128.80
135.20
139.40
Al Meera Consumer Goods Co. (MERS QD)
189.50
DOWN
UP
187.80
185.00
190.00
191.50 Industrials
Industrials
Industries Qatar (IQCD QD)
190.00
UP
UP
188.50
186.40
191.00
192.10 Qatar Electricity & Water Co. (QEWS QD) 185.00 FLAT FLAT 184.00 182.00 186.00 188.00
Gulf International Services (GISS QD)*
116.60
DOWN
UP
115.00
111.90
118.10
121.00 Qatari Investors Group (QIGD QD)* 58.20 DOWN UP 58.00 56.20 59.00 59.70 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)
40.30
DOWN
FLAT
40.10
39.70
41.00
41.80 United Development Co. (UDCD QD) 29.25 DOWN UP 29.05 28.55 29.85 30.00 Telecom
Telecom
Ooredoo (ORDS QD)
123.00
DOWN
DOWN
121.40
120.00
124.50
126.00 Vodafone Qatar (VFQS QD) 21.24 UP UP 21.00 20.78 21.40 21.97 Transportation
Transportation
Nakilat (QGTS QD)
24.25
DOWN
UP
24.12
23.90
24.45
24.61 Milaha (QNNS QD) 94.00 FLAT UP 93.00 91.30 95.10 96.50