1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term –Pull Back
Al Rayan Islamic Index: Short-Term – Pull Back
Industries Qatar: Short-Term – Pull Back
The QE index failed to hold the lower end of the channel and
penetrated below its support of 10,300 to close at 10,268.69, on good
volumes. Meanwhile, the RSI is retreating from the overbought zone,
while the MACD has converged with the signal line and about to
make a negative crossover, indicating weakness. The index is likely
to test its support at 10,220. If this is broken, it may drift lower and test
10,100. On the upside, immediate resistance is seen at 10,300.
The QERI index was unable to hold above the 3,036 level and
declined 0.85% to close the session at 3,014.61. The bears were in
full control as the index closed at the lowest point of the day,
suggesting further weakness in the QERI Index. The RSI has begun
to retreat from the deep overbought zone, indicating that the index
may witness further correction. If the index fails to reclaim the 3,036
level, it may decline further and test its support of 2,985.
After making many unsuccessful attempts to break resistance of
QR169.00, IQCD fell sharply and penetrated below the support of the
QR166.50 level. The stock has formed a bearish Marubozu Candle
for second consecutive day, indicating weakness in the stock. With
both indicators moving down, a decline below QR165.00 may push
the stock towards QR163.22.However, if IQCD manages to move
above QR166.50, it may attract buyers.
Qatar International Islamic Bank: Short-Term – Bounce Back
Qatar Islamic Bank: Short-Term – Bounce Back
Qatar Electricity & Water Co.: Short-Term – Pull Back
QIIK breached QR59.00 and QR59.80 levels in a single swoop,
jumping 1.69% to close at QR60.00. The stock has tagged a new 52week high, supported by very large volumes, which is a positive sign
for the stock. We believe if QIIK holds above the QR59.80 level, it will
move higher. Moreover, both momentum indicators are moving in an
upward direction, supporting our bullish outlook for the stock. On the
flip side, a slide below the QR59.80 level can take QIIK to QR59.00.
After repetitive attempt to breach the long-term resistance line at
QR69.00, QIBK finally moved above this level yesterday. Notably,
volumes were also high on breakout. We believe if QIBK clings on to
this level, it may move higher towards QR69.60. Meanwhile, the RSI
and the MACD are moving higher, indicating a bullish trend. On the
flip side, if the stock fails to hold above the QR69.00 level, it may
retreat towards its 21-day moving average (currently at QR68.34).
After tagging lower lows during last few days, QEWS breached the
important support level of QR164.34 to close the session at
QR163.70. We believe the stock may drift lower from its current level
and test the 21-day moving average (currently at QR162.65), below
which, the next support is near the QR161 level. The RSI is trending
lower, while the MACD is converging towards the signal line in a
bearish manner, indicating weakness in 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)
10,268.69
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,014.61
UP
UP
2,900.00
2,800.00
3050.00
3,125.00
Masraf Al Rayan (MARK QD)
32.50
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)
56.30
UP
UP
42.00
39.50
58.15
59.20
Qatar Islamic Bank (QIBK QD)*
69.10
UP
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)*
60.00
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)
65.40
UP
UP
58.50
57.00
66.30
67.15
National Leasing Holding Co. (NLCS QD)
31.55
UP
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
48.30
UP
DOWN
47.00
46.25
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.50
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)*
166.00
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)*
163.70
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.80
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
39.90
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)
29.90
UP
UP
22.80
19.50
29.90
30.50
United Development Co. (UDCD QD)
23.53
UP
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)
135.00
DOWN
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)
10.85
UP
UP
8.50
8.24
11.15
11.75
Nakilat (QGTS QD)
20.11
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
90.00
UP
UP
58.20
56.70
89.70
90.25
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.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
Page 2 of 2