1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Masraf Al Rayan: Short-Term – Downmove
The QE Index failed to make any further headway above the
10,520.0 level and fell by around 36 points (-0.34%) to close at its
intraday low of 10,462.54. The important support to watch out for is
the 10,445.44 level as any dip below this level may drag the index to
test its 21-day moving average (currently at 10,418.82). On the flip
side, if the index manages to hold on to the 10,445.44 level, it may
proceed toward the 10,500.0-10,520.0 levels.
The QERI Index rose by around 0.10% and tagged a new all-time
high of 3,122.96, surpassing its previous best of 3,104.60. However, it
reversed to close near its day’s open. Moreover, the index developed
a shooting star candle pattern, which usually indicates consolidation
or decline as buyers backed away from higher prices. The index has
immediate support at 3,091.65, which it needs to hold in order to keep
its upward momentum going, or else it may have bearish implications.
MARK dipped below the support of QR32.85 on the back of large
volumes, which is a negative sign. MARK has been trending weak on
the charts over the past few days and is moving along the descending
trendline. We believe the stock may drift lower and test its immediate
support of QR32.35. Meanwhile, both momentum indicators are in
downtrend mode with no immediate trend reversal signs. However, a
close above QR32.85 may provide some relief.
Nakilat: Short-Term – Downmove
Qatari Investors Group: Short-Term – Upswing
Qatar Electricity & Water Co.: Short-Term – Upswing
QGTS penetrated below the 21-day moving average (currently at
QR20.98) on Tuesday and declined further yesterday. Moreover, the
stock developed a red Marubozu candle pattern, which usually
indicates a likely correction. We believe although the stock is sitting
right at its support of QR20.60, it may not cling on to it and head lower
to test QR20.35. Moreover, the RSI is moving further down from the
mid-line, while the MACD line is growing more bearish.
QIGD continued its relentless rally and moved up around 5.44%,
tagging another new all-time high yesterday. The stock cleared its
long-term ascending trendline thus confirming its strong uptrend. In
addition, QIGD has support for a further higher move; the RSI is
moving strongly in the overbought territory, while the MACD line is
rising upward indicating continuation of the stock tagging new highs.
However, QR53.80 must be closely watched for any reversal.
QEWS continued its upward momentum and rose by around 1.69%
and did not weaken even after the market turbulence, which is a
positive sign for buyers. Moreover, the stock surpassed its ascending
trendline on the back of large volumes indicating rising buying
interest. With the RSI and the MACD lines pointing higher, it seems
QEWS’ preferred direction is toward the upside. However, a dip below
the ascending trendline near QR178.90 may halt its upmove.
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)
10,462.54
UP
UP
10,445.44
10,400.00
10,520.00
10,550.00
Al Rayan Islamic Index (QERI Index)
3,099.95
UP
UP
3,091.65
3,071.36
3,104.60
3,125.00
Masraf Al Rayan (MARK QD)*
32.50
DOWN
UP
32.35
32.00
32.85
33.50
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)
69.10
DOWN
UP
69.00
68.50
69.50
70.30
Qatar International Islamic Bank (QIIK QD)
60.20
DOWN
UP
60.00
59.50
60.50
61.00
Qatar Insurance (QATI QD)
65.30
DOWN
UP
65.00
64.40
65.90
66.50
National Leasing Holding Co. (NLCS QD)
30.00
DOWN
DOWN
30.00
29.55
30.60
31.00
Widam Food Co. (WDAM QD)
53.80
UP
UP
53.00
51.90
54.50
55.00
Al Meera Consumer Goods Co. (MERS)
132.30
DOWN
DOWN
132.00
130.00
133.40
133.90
Industries Qatar (IQCD QD)
166.50
DOWN
UP
166.50
165.00
167.25
168.10
Qatar Electricity & Water Co. (QEWS QD)*
180.00
UP
UP
178.90
176.00
182.00
184.80
Gulf International Services (GISS QD)
60.60
UP
UP
60.00
59.80
61.50
62.20
Qatari Investors Group (QIGD QD)*
54.30
UP
UP
53.80
53.00
56.00
57.00
Barwa Real Estate Co. (BRES QD)
30.25
DOWN
UP
30.10
29.70
30.85
31.20
United Development Co. (UDCD QD)
22.85
DOWN
FLAT
22.85
22.50
23.15
23.65
Ooredoo (ORDS QD)
136.50
FLAT
DOWN
136.00
135.00
137.00
138.00
Vodafone Qatar (VFQS QD)
11.17
DOWN
UP
10.83
10.20
11.19
11.44
Nakilat (QGTS QD)*
20.60
DOWN
UP
20.60
20.35
21.07
21.32
Milaha (QNNS QD)
84.70
DOWN
UP
84.50
84.10
85.00
86.00
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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