1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Bounce Back
Al Meera Consumer Goods Co.: Short-Term – Bounce Back
The QE Index respected the channel support at 10,271.25 and
moved above its immediate resistance level of 10,316.03 to close the
session at 10,325.72. However, the index was not able to hold near
the upper end of the channel (at 10,398.46) as buyers backed away
from higher prices. We believe a move above this channel resistance
will attract buyers. Both the RSI and the MACD are bullish currently.
However, investors should be cautious on a move below 10,270.
The QERI index rebounded from the 2,985.84 level yesterday, to
close at 3,026.87. We believe the bulls may continue to dominate the
bears and push prices higher toward 3,036.33. The key for the index
will be whether it can hold on to its immediate support level of
2,985.84. Further, both the RSI and the MACD lines are moving
higher, which only reinforces our bullish outlook for the index.
After consolidating in the range of QR135-QR133.40, MERS finally
moved up and penetrated the QR135 level as well as the 21-day
moving average (currently at QR135.04). If MERS clears the
QR136.40 level traders should watch out for a test of the QR137.60
level. Moreover, the bullish RSI and the rising MACD lines provide the
stock an upward bias. However, if the stock fails to hold on to the
current level, it may retest QR135.0.
National Leasing Holding Co.: Short-Term – Bounce Back
Ooredoo: Short-Term – Pull Back
Qatar Electricity & Water Co.: Short-Term – Pull Back
NLCS moved above the resistance level of QR31.0 and rose by
0.65% to close the session at QR31.20. The rise in the stock is on the
back of relatively strong volumes, which provides a positive outlook
for the stock. If NLCS manages to hold the current level it may move
higher toward QR32.0, followed by the 55-day moving average
(currently at QR32.55). Moreover, both the RSI and the MACD lines
are pointing upward, thus supporting our bullish outlook.
After repeatedly failing to breach the 55-moving average (currently at
QR138.62), ORDS penetrated the QR136 level and fell by 2.18% to
close the session at QR134.90. Considering that the fall has been on
higher volumes, we believe the stock may drift lower and test the
QR133.90 level. With both the indicators trending lower, ORDS’
preferred near-term direction appears to be toward the downside.
However, any move above QR136.0 may attract buyers.
QEWS continued its downtrend and breached its immediate support
level of QR167. Meanwhile, volumes are considerably higher,
indicating weakness in the stock. If the stock fails to hold to its support
of QR166.30 level, the price may drag toward QR164.80. Moreover,
the RSI is pointing down, while the MACD is converging with the
signal line in a bearish manner. On the flip side, a move above the
QR167 level may attract buying interest.
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)
10,325.72
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,026.87
UP
UP
2,900.00
2,800.00
3050.00
3,125.00
Masraf Al Rayan (MARK QD)
32.25
UP
UP
24.00
23.20
32.90
33.65
Commercial Bank of Qatar (CBQK QD)
68.90
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.80
UP
UP
42.00
39.50
58.15
59.20
Qatar Islamic Bank (QIBK QD)
69.00
UP
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
58.40
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)
65.60
UP
UP
58.50
57.00
66.30
67.15
National Leasing Holding Co. (NLCS QD)*
31.20
FLAT
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
47.30
DOWN
DOWN
47.00
46.25
69.10
78.50
Al Meera Consumer Goods Co. (MERS)*
135.50
FLAT
FLAT
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
169.00
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)*
166.70
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.30
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
41.00
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)
30.50
UP
UP
22.80
19.50
29.90
30.50
United Development Co. (UDCD QD)
23.89
UP
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)*
134.90
DOWN
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)
10.70
UP
UP
8.50
8.24
11.15
11.75
Nakilat (QGTS QD)
20.20
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
87.90
UP
UP
58.20
56.70
89.70
90.25
Banks and Financial Services
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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