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 – Breakout
The QE Index declined marginally by around 7 points (-0.06%) to
close at 10,468.59. The important support to watch out for traders is
the 10,445.44 level. We believe till the time index trades above this
level the upmove may remain intact. However, a dip below 10,445.44
on a closing basis may witness selling pressure and the index may
test the 10,400.0 level. On the other hand, the index needs to hold
10,445.44 in order to advance toward 10,500.0.
The QERI Index failed to move above the resistance of 3,071.36 and
moved lower by around (-0.10%) to close the session at 3,066.43.
The immediate support is seen around 3,048.0. Conversely, the
resistance is at 3,071.36. The index may continue to oscillate
between these levels. Only a move above or below these levels may
decide the next direction. Meanwhile, both indicators are providing
mixed signals, thus supporting our neutral outlook.
DHBK cleared the resistance of QR57.40 after consolidating below
this level over the past few days. Moreover, the stock developed a
bullish Marubozu candle pattern indicating a likely advance from the
current level. We believe with volumes also picking up it seems
potential buyers are stepping in and a rise toward QR58.20 looks
possible. Meanwhile, the RSI has shown a bullish divergence and is
moving up toward the overbought territory.
Nakilat: Short-Term – Breakout
Al Meera Consumer Goods Co.: Short-Term – Downmove
Industries Qatar: Short-Term – Downmove
QGTS surpassed the important resistance of QR21.44 after feigning
a failure earlier, which is a positive sign for buyers. Moreover, the
stock developed a bullish Marubozu candle pattern indicating that the
stock may move higher toward QR21.60. However, a dip below
QR21.44 on a closing basis may indicate a false breakout.
Meanwhile, the MACD is diverging away from the signal line and is
moving up in a bullish manner.
MERS dipped further down on Tuesday. The stock has witnessed a
steady decline since penetrating below both the moving averages.
We believe although the stock is trading close to its immediate
support of QR132.0, it seems unlikely that it may cling on to it and
decline further to test QR130.0. However, if the stock manages to
cling on to QR132.0 it may proceed ahead. Meanwhile, both
indicators are in downtrend mode.
IQCD penetrated below the support of the 21-day moving average
(currently at QR167.75). We believe the stock is underperforming
over the past few days and is facing stiff resistance at the descending
trendline. Meanwhile, with the RSI line pointing lower and the MACD
line moving further down from the signal line, it looks like IQCD may
drift lower to test its immediate support at QR166.50. However, if the
stock reclaims the QR167.75 level, it may halt its downmove.
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)
10,468.59
UP
UP
10,445.44
10,400.00
10,500.00
10,550.00
Al Rayan Islamic Index (QERI Index)
3,066.43
UP
UP
3,048.00
3,036.00
3,071.36
3,091.65
Masraf Al Rayan (MARK QD)
33.70
UP
UP
33.50
32.85
34.15
34.90
Commercial Bank of Qatar (CBQK QD)
70.20
UP
UP
70.00
69.50
70.50
70.90
Doha Bank (DHBK QD)*
57.90
UP
UP
57.40
56.90
58.20
58.50
Qatar Islamic Bank (QIBK QD)
70.00
UP
UP
69.50
69.00
70.90
71.50
Qatar International Islamic Bank (QIIK QD)
60.40
UP
UP
60.10
59.80
61.20
62.00
Qatar Insurance (QATI QD)
66.50
FLAT
UP
66.50
65.90
67.50
67.90
National Leasing Holding Co. (NLCS QD)
30.80
DOWN
DOWN
30.60
30.00
31.00
31.45
Widam Food Co. (WDAM QD)
54.50
UP
UP
54.50
54.00
55.00
55.50
Al Meera Consumer Goods Co. (MERS)*
132.50
DOWN
DOWN
132.00
130.00
133.40
133.90
Industries Qatar (IQCD QD)*
167.50
DOWN
UP
166.50
166.00
168.10
168.90
Qatar Electricity & Water Co. (QEWS QD)
166.80
DOWN
UP
166.00
165.00
168.00
169.00
Gulf International Services (GISS QD)
61.20
UP
UP
60.50
59.80
62.25
62.90
Qatari Investors Group (QIGD QD)
40.90
UP
UP
40.40
39.50
41.50
42.20
Barwa Real Estate Co. (BRES QD)
30.35
UP
UP
30.10
29.70
30.85
31.40
United Development Co. (UDCD QD)
23.24
UP
UP
23.15
22.85
23.65
23.95
Ooredoo (ORDS QD)
137.70
UP
DOWN
137.00
136.00
138.00
139.90
Vodafone Qatar (VFQS QD)
11.35
UP
UP
11.19
10.90
11.44
11.70
Nakilat (QGTS QD)*
21.45
UP
UP
21.32
21.07
21.60
22.00
Milaha (QNNS QD)
86.00
FLAT
FLAT
86.00
85.00
86.50
87.30
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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