1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
The QE Index snapped its six-day winning streak and shed around
214 points (-1.49%) on the back of severe profit-booking. The index
remained in a bearish mode throughout the day and penetrated
below the 14,300.0 and 14,200.0 levels in a single swoop. However,
the uptrend in the index remains intact. The index has its immediate
supports near 14,100.0, followed by 14,050.0. Bulls need not worry
until the index breaks and stays below these levels.
Al Meera Consumer Goods Co.: Short-Term – Pullback
MERS has been drifting lower over the past few days after
encountering stiff resistance at the descending trendline. Moreover,
the stock breached the support of the 55-day moving average on the
back of large volumes, which is a negative sign. We believe although
the stock is sitting exactly on its support of QR185.0, it is unlikely to
cling onto it and may move down further to test QR183.0. Meanwhile,
both the indicators are pointing down, indicating weakness.
Al Rayan Islamic Index: Short-Term – Neutral
The QERI Index ended the session in red with a cut of around 64
points (-1.32%) to settle at 4,779.60. The index failed to make any
headway above 4,850.0 and retreated to breach 4,800.0, as traders
opted to book profits. The index may bounce back if it sustains above
4,770.0 on a closing basis. On the other hand, any decline below
4,770.0 may drag the index further down toward 4,750.0, which is
also in proximity to the 21-day moving average.
Gulf International Services: Short-Term – Bounce Back
GISS has been consolidating along the horizontal line at QR124.10
over the past few weeks, which has provided support to the stock
since August. Although the stock did slip under this support a few
times, it has managed to close above it, as buyers rushed in. We
believe as long as the stock manages to keep its head above
QR124.10, it may advance toward QR126.80. However, if the stock
dips below QR124.10, it may result in a pullback.
Al Khalij Commercial Bank: Short-Term – Pullback
KCBK has been in a declining mode over the past few days and
penetrated further below the important support of QR22.85. We
believe the stock might drift back toward the 21-day moving average.
With the RSI showing a negative slope and the MACD closing the
signal line in a bearish manner, it looks like the preferred near-term
direction for KCBK is on the downside. However, if the stock
manages to climb above QR22.85, it may rebound.
Vodafone Qatar: Short-Term – Pullback
VFQS reversed well before hitting its next target of QR22.80 on the
back of large volumes. Moreover, the stock developed a bearish
engulfing candlestick formation, indicating a likely continuation of this
pullback. We believe VFQS may not hold onto its immediate support
of QR21.97 and may drift down further to test the 21-day moving
average. However, if the stock manages to stay above QR21.97, it
may move higher. Both MACD and RSI indicators look weak.

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) 14,136.18 UP UP 14,102.54 14,050.00 14,225.39 14,300.00 Al Rayan Islamic Index (QERI Index) 4,779.60 UP UP 4,770.31 4,750.00 4,811.58 4,849.82 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
56.50
FLAT
UP
55.80
54.00
57.30
58.20 Commercial Bank of Qatar (CBQK QD) 73.30 UP UP 72.40 70.70 74.30 75.00
Doha Bank (DHBK QD)
61.70
DOWN
UP
61.00
60.00
62.00
63.30 Qatar Islamic Bank (QIBK QD) 117.90 DOWN UP 117.40 115.00 118.90 119.90
Qatar International Islamic Bank (QIIK QD)
93.10
UP
UP
91.50
90.50
93.50
96.00 Qatar Insurance (QATI QD) 98.10 DOWN UP 97.00 95.20 99.00 100.00
Al Khalij Commercial Bank (KCBK QD)*
22.59
FLAT
UP
22.49
22.00
22.85
23.23 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
130.00
DOWN
UP
128.80
126.50
131.40
135.20
Al Meera Consumer Goods Co. (MERS QD)*
185.00
DOWN
DOWN
185.00
183.00
187.80
190.00 Industrials
Industrials
Industries Qatar (IQCD QD)
195.30
UP
UP
194.60
193.50
196.20
198.00 Qatar Electricity & Water Co. (QEWS QD) 192.00 UP UP 192.00 190.00 194.00 196.00
Gulf International Services (GISS QD)*
125.30
UP
UP
124.10
122.50
126.80
129.80 Qatari Investors Group (QIGD QD) 59.70 FLAT UP 59.00 58.00 60.60 61.30 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)
41.65
UP
UP
41.00
40.20
41.80
42.50 United Development Co. (UDCD QD) 29.60 UP UP 29.50 29.05 30.00 30.45 Telecom
Telecom
Ooredoo (ORDS QD)
137.90
UP
UP
135.90
133.90
138.50
139.90 Vodafone Qatar (VFQS QD)* 21.99 UP UP 21.97 21.40 22.29 22.80 Transportation
Transportation
Nakilat (QGTS QD)
24.90
UP
UP
24.90
24.45
25.30
25.90 Milaha (QNNS QD) 97.00 UP UP 96.50 95.10 97.80 98.80