1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
Al Rayan Islamic Index: Short-Term – Upmove
Barwa Real Estate Co.: Short-Term – Breakout
The QE Index rose around 45 points (0.43%) for the second
consecutive day to close near its intraday high. The positive
development was that the index rebounded near the 10,400.0 level
and rallied around 99 points from its day’s low. We believe as long as
the index trades above 10,445.44, the upmove may remain intact and
continue to advance. The index faces its immediate resistance near
10,520.0, which if breached, could target the 10,550.0 level.
The QERI Index rallied aggressively around 1.04% and breached its
resistances of 3,071.36 and 3,091.65 in a single swoop, which is a
positive sign for buyers. We believe this strong breach of resistances
has bullish implications and the index may proceed toward its all-time
high of 3,104.60. Moreover, the index has support for a higher move
as indicated by the RSI which is moving higher. However, a dip below
3,091.65 on a closing basis may result in consolidation.
BRES cleared the resistances of QR30.10 and the 21-day moving
average (currently at QR30.35) in a single trading session. The stock
ended its losing streak on Monday and moved higher yesterday
indicating confirmation of this upmove. We believe with the RSI
showing strength, BRES may head higher toward QR30.85. Any
move above this level may spark additional buying interest and push
the stock to test the QR31.20 level.
Commercial Bank of Qatar: Short-Term – Upmove
Qatari Investors Group: Short-Term – Upswing
Qatar Electricity & Water Co.: Short-Term – Upswing
CBQK continued its upmove and moved higher around 0.43%
yesterday. Moreover the stock developed a bullish Marubozu candle
pattern for the second consecutive day indicating a likely higher
move. The stock is currently sitting right at its resistance of QR70.50.
If the stock manages to cling on to this level, a continued rise toward
QR70.90 may be possible. Meanwhile, the RSI is moving up in a
bullish manner indicating the possibility of a further advance.
QIGD respected its support of QR47.0 and rallied around 7.97%
tagging another new all-time high. The recent price action indicates
that QIGD could continue to tag new highs. Moreover, the RSI is
trending strongly in the overbought territory, while the MACD is
moving up in a bullish manner suggesting this rally may continue for a
longer time. Thus, short-term traders may accumulate at the current
level, but must keep a close watch on QR51.0 for any reversal signs.
QEWS respected its support of QR170.90 and moved higher around
3.21%. Notably, volumes were also large indicating potential buyers
stepping in. We believe the stock may continue its upward
momentum and advance higher. Moreover, the RSI and the MACD
lines are pointing higher with no immediate trend reversal signs
indicating strength in the rally, thus supporting our bullish outlook for
the stock.
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)
10,498.45
UP
UP
10,445.44
10,400.00
10,520.00
10,550.00
Al Rayan Islamic Index (QERI Index)
3,097.00
UP
UP
3,091.65
3,071.36
3,104.60
3,125.00
Masraf Al Rayan (MARK QD)
32.85
DOWN
UP
32.85
32.35
33.50
34.15
Commercial Bank of Qatar (CBQK QD)*
70.50
UP
UP
69.65
69.20
70.50
70.90
Doha Bank (DHBK QD)
58.00
UP
UP
57.40
56.90
58.20
58.50
Qatar Islamic Bank (QIBK QD)
69.30
DOWN
UP
69.00
68.50
69.50
70.30
Qatar International Islamic Bank (QIIK QD)
60.50
FLAT
UP
59.80
59.20
61.20
62.00
Qatar Insurance (QATI QD)
65.80
DOWN
UP
65.40
64.40
65.90
66.50
National Leasing Holding Co. (NLCS QD)
30.30
DOWN
DOWN
30.00
29.55
30.60
31.00
Widam Food Co. (WDAM QD)
54.00
UP
UP
53.00
51.90
54.50
55.00
Al Meera Consumer Goods Co. (MERS)
132.20
DOWN
DOWN
132.00
130.00
133.40
133.90
Industries Qatar (IQCD QD)
167.20
FLAT
UP
166.50
165.00
168.10
168.90
Qatar Electricity & Water Co. (QEWS QD)*
177.00
UP
UP
176.00
175.00
178.80
180.00
Gulf International Services (GISS QD)
60.70
UP
UP
60.00
59.80
61.50
62.20
Qatari Investors Group (QIGD QD)*
51.50
UP
UP
51.00
50.20
52.50
53.80
Barwa Real Estate Co. (BRES QD)*
30.45
UP
UP
30.10
29.70
30.85
31.20
United Development Co. (UDCD QD)
23.04
DOWN
FLAT
22.85
22.50
23.15
23.65
Ooredoo (ORDS QD)
137.90
UP
UP
137.00
136.00
138.00
139.90
Vodafone Qatar (VFQS QD)
11.11
DOWN
UP
10.83
10.20
11.19
11.44
Nakilat (QGTS QD)
20.90
FLAT
UP
20.60
20.00
21.07
21.32
Milaha (QNNS QD)
86.00
DOWN
UP
85.00
84.50
86.00
87.10
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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