TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
Al Rayan Islamic Index: Short-Term – Upmove
Industries Qatar: Short-Term – Breakout
The QE Index continued its bullish momentum on Thursday and
surpassed the 11,200.0 and 11,300.0 psychological levels in a single
swoop, tagging another new 52-week high of 11,338.41. The index
witnessed a strong rally and gained around 159 points as bulls
continued their domination over the bears. We believe the index is
currently in a strong bull grip and may advance higher targeting
11,400.0. Meanwhile, both the indicators support a further upmove.
The QERI Index managed to clear the 3,240.37 level and tagged a
new all-time high. The index has been gaining strength since testing
its support near 3,200.0 and is in uptrend mode. We believe based on
the momentum of the current higher move the index is poised to tag
new highs. Meanwhile, the RSI is moving up in a bullish manner
indicating a potential rally. However, traders may need to keep a
close watch on 3,240.37 for any reversal signs.
IQCD surpassed the key resistance of the long-term ascending
trendline near QR180.0 and tagged a 52-week high. Notably,
volumes were also large on the breakout indicating rising buying
interest. Moreover, the stock developed a bullish Marubozu candle
pattern indicating continuation of this upmove. In addition, the stock
has support for a higher move from the RSI, which is moving up in a
bullish manner, while the MACD is widening away on the upside.
Ooredoo: Short-Term – Upswing
Gulf International Services: Short-Term – Breakout
Qatar Islamic Bank: Short-Term – Breakout
ORDS continued its upmove and surged 6.33%, tagging another new
52-week high on the back of rising buying interest which is a positive
signal. We believe the stock has been trending strong, and may
continue to accelerate further tagging new 52-week highs.
Meanwhile, the RSI and the MACD lines are moving up in a bullish
manner with no immediate trend reversal signs, thus supporting our
bullish outlook for the stock.
GISS breached the important resistances of QR71.20 and the
ascending trendline and tagged a new all-time high on the back of
large volumes. Moreover, the stock moved above these levels after
consolidating below it over the past few days. With the RSI and the
MACD lines pointing higher GISS’s preferred direction seems to be
on the upside. However, a dip below the support of the ascending
trendline may result in a downmove.
QIBK moved above the vital resistance of QR75.0 after few failed
attempts over the past few days. Moreover, the stock developed a
bullish Marubozu candle pattern indicating the possibility of a higher
move. We believe the stock may now witness a short-term rally
toward QR77.0 as it has little resistance until then. Meanwhile, the
RSI is moving higher toward the overbought territory. However, a dip
below QR75.0 may result in a false breakout.
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Qatar Exchange Index (QE Index)
Al Rayan Islamic Index (QERI Index)
Masraf Al Rayan (MARK QD)
Commercial Bank of Qatar (CBQK QD)
Doha Bank (DHBK QD)
Qatar Islamic Bank (QIBK QD)*
Qatar International Islamic Bank (QIIK QD)
Qatar Insurance (QATI QD)
National Leasing Holding Co. (NLCS QD)
Widam Food Co. (WDAM QD)
Al Meera Consumer Goods Co. (MERS)
Industries Qatar (IQCD QD)*
Qatar Electricity & Water Co. (QEWS QD)
Gulf International Services (GISS QD)*
Qatari Investors Group (QIGD QD)
Barwa Real Estate Co. (BRES QD)
United Development Co. (UDCD QD)
Ooredoo (ORDS QD)*
Vodafone Qatar (VFQS QD)
Nakilat (QGTS QD)
Milaha (QNNS QD)
Banks and Financial Services
Consumer Goods and Services
*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
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.
Simple Moving Average (SMA): A SMA is the average of the closing price of a security for a given period.
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.
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.
Ahmed M. Shehada
QNB Financial Services SPC
Head of Research
Tel: (+974) 4476 6534
Head of Trading
Tel: (+974) 4476 6535
Head of Sales
Tel: (+974) 4476 6533
Manager - HNWI
Tel: (+974) 4476 6544
Contact Center: (+974) 4476 6666
PO Box 24025
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