1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Bounce Back
Qatar International Islamic Bank: Short-Term – Bounce Back
The QE index rose around 15 points (0.15%) to close the session at
10,341.07. The index is currently trading near the lower end of the
channel (at 10,316). We believe if the QE Index manages to hold this
level, it may move higher toward 10,400. With both the RSI and the
MACD moving higher, the index’s preferred direction is upward.
However, if the index fails to hold at the current level it may drift down
and test its support of 10,300.0.
The QERI Index continued its uptrend and rose by 0.45% to close at
3,040.57. The index moved lower in the early part of trading but
recovered to close above its immediate resistance level of 3,036.33.
We believe if the index holds above this level, it may move higher. On
the flip side, a move below 3,036 could lead to a test of 2,985. With
both the indicator lines moving higher, the outlook for the index is
bullish.
QIIK cleared the resistance of QR58.60 and developed a bullish
Marubozu Candle pattern indicating a likely advance from the current
level. Meanwhile, the rise in the stock has been supported by high
volumes. We believe the stock may now move toward QR59.80.
Meanwhile, the RSI line is pointing upward. On the flip side, investors
should turn cautious if the stock dips below QR58.60, as it may
prompt the stock to test its support of QR57.90.
Barwa Real Estate Co.: Short-Term – Pull Back
Masraf Al Rayan: Short-Term – Bounce Back
United Development Co.: Short-Term – Pull Back
BRES developed a Doji pattern on Monday, which often suggests a
shift in the trend direction. The current trend is upward. We believe if
the stock penetrates below its immediate support level of QR30.05, it
may drift down further and test QR29.40. Moreover, the RSI has
shown a bearish diversion, indicating weakness in the stock. On the
flip side, if the stock clings on to the current level on a closing basis, it
may move higher toward QR30.85.
MARK cleared the resistance of QR32.25 and QR32.60 in a single
swoop on the back of strong volumes, indicating strength in the stock
to move higher. We believe if MARK holds at the current level, it may
move higher toward QR33.00. On the flip side, a dip below QR32.25
may result in continuation of consolidation in the range of QR32.25QR32.00. With both the indicators moving upward, the stock’s
preferred direction appears to be toward an upside.
UDCD developed a bearish Marubozu candle (trend reversal pattern)
on Monday. We believe the stock is in need of some consolidation as
buyers backed away from higher prices. We believe UDCD may
decline further and test the QR23.55 level. Moreover, the RSI line is
retrieving from the overbought zone, supporting a bearish outlook for
the stock. However, if the stock holds on to its support level, it may
move higher toward QR24.24.
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)
10,341.07
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,040.57
UP
UP
2,900.00
2,800.00
3050.00
3,125.00
Masraf Al Rayan (MARK QD)*
32.70
UP
UP
24.00
23.20
32.90
33.65
Commercial Bank of Qatar (CBQK QD)
68.50
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.70
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)*
59.00
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)
65.50
UP
UP
58.50
57.00
66.30
67.15
National Leasing Holding Co. (NLCS QD)
31.50
UP
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)
135.80
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
168.00
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
166.60
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.50
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
40.05
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)*
30.45
UP
UP
22.80
19.50
29.90
30.50
United Development Co. (UDCD QD)*
23.75
UP
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)
135.50
DOWN
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)
11.30
UP
UP
8.50
8.24
11.15
11.75
Nakilat (QGTS QD)
20.15
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
88.80
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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