Qatar stock exchange

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Daily Technical Trader – Qatar
Sunday, 28 December 2014
Stocks Covered Today
Ticker Price Target
IQCD 173.00 170.00
KCBK 21.85 21.45
QSE Index
Level % Ch. Vol. (mn)
Last 12,449.05 0.7 11.4
Resistance/Support
Levels 1
st
2
nd
3
rd
Resistance 12,450 12,600 12,800
Support 12,200 11,430 11,230
QSE Index Commentary
Overview:
The QSE Index bounced off the strong
long-term uptrend line and gained 11.3%
last week. The general sentiment is still
positive given the relative stability seen in
oil prices. The good news is that this
bounce was accompanied with higher
volumes, suggesting further increase in
the level of the Index is possible. In the
short term, there is strong resistance
around the 12,450 level due to the lower
side of the downtrend channel (seen on
the daily chart) and a downtrend line
(denoted with the dashed line on the
intraday chart).
Expected Target Level: 12,600
The Index needs persistent trading above
the 12,450 level in order to achieve the
target level.
Suggested Stop-Loss Level: 12,200
QSE Index (Daily)
Source: Bloomberg, QNBFS Research
QE Summary
Market Indicators 25 Dec 14 24 Dec 14 %Ch.
Value Traded (QR mn) 910.8 659.5 38.1
Ex. Mkt. Cap. (QR bn) 679.3 674.7 0.7
Volume (mn) 22.8 13.2 72.7
Number of Trans. 8,651 6,300 37.3
Companies Traded 43 42 2.4
Market Breadth 30:9 33:7 –
QE Indices
Market Indices Close 1D% RSI
Total Return 18,567.64 0.7 49.4
All Share Index 3,163.86 0.7 49.1
Banks 3,237.57 0.2 50.9
Industrials 4,019.35 0.6 46.6
Transportation 2,276.19 0.5 51.6
Real Estate 2,326.50 2.3 46.3
Insurance 3,840.84 1.0 55.9
Telecoms 1,442.43 1.6 52.2
Consumer 6,930.96 0.7 49.6
Al Rayan Islamic 4,176.28 1.6 50.0
RSI 14 (Over Bought)
Ticker Close 1D% RSI
RSI 14 (Over Sold)
Ticker Close 1D% RSI
IHGS 107.90 10.0 24.5
AHCS 11.35 1.7 29.2
QSE Index (30min)
Source: Bloomberg, QNBFS Research

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IQCD
Price % Ch. Volume
Last 173.00 -1.09 157,450
Resistance/Support
Levels (QR) 1
st
2
nd
3
rd
Resistance 176.40 177.00 180.00
Support 170.00 167.00 164.00
Commentary
Overview:
The name could not break the resistance
price of QR177.00 and stabilized below
the level. On the daily chart, indicators are
showing weakness as the MACD is below
the zero line and the RSI is point down
from the neutral area. The intraday chart
supports this weakness notion as the
MACD’s Histogram is slipping below the
zero. Pennants are considered a bullish
formation. Although there is a small
pennant (the triangle shown on the
intraday chart), the formation has already
been breached downward. As a result, it is
safe to conclude that further weakness will
be observed in the coming sessions on
the name.
Expected Price Retreats: QR170.00,
QR167.00 – QR164.00
We have multiple targets for IQCD given
the support levels seen on the name and
more importantly, the existence of a price
gap. This price gap could be filled when
the price retraces back near the start of
the previous move. A break below
QR173.00 should trigger the selling
recommendation.
(Daily)
Source: Bloomberg, QNBFS Research
(Hourly)
Source: Bloomberg, QNBFS Research

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KCBK
Price % Ch. Volume
Last 21.85 -1.09 263,459
Resistance/Support
Levels (QR) 1
st
2
nd
3
rd
Resistance 22.30 22.70 23.40
Support 21.45 21.25 21.00
Commentary
Overview:
Although KCBK is trading inside a
medium-term symmetrical triangle, there
is a strong possibility that the stock may
retreat to the lower part of that triangle.
The bank is trading below all its SMAs on
the daily chart. These SMAs have created
heavy resistance alongside the upper
border of the triangle. Indicators are
mostly flattish to the downside; this is a
confirmation of the price range created
over the last few months.
Expected Price Retreat: QR21.45 –
QR21.25
It is possible to see the price dip to the
lower side of the triangle, which can be
considered as a strong support. Selling
could be triggered by trading below
QR21.85. Only a strong push above the
QR22.70 will discard this scenario.
(Daily)
Source: Bloomberg, QNBFS Research
(Hourly)
Source: Bloomberg, QNBFS Research

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Intra-day Fibonacci Support and Resistance Levels Daily Moving Averages
Support Levels Resistance Levels
Ticker Close 3
rd
2
nd
1
st
Pivot 1
st
2
nd
3
rd
50 SMA 100 SMA 200 SMA
QSE Index 12,449.05 12,153.07 12,247.01 12,305.05 12,398.99 12,492.93 12,550.97 12,644.91 13,048.84 13,366.67 12,946.33
Total Return 18,567.64 18,126.19 18,266.30 18,352.86 18,492.98 18,633.09 18,719.65 18,859.77 19,462.22 19,936.27 19,291.03
All Share 3,163.86 3,089.51 3,112.93 3,127.41 3,150.84 3,174.26 3,188.74 3,212.17 3,312.60 3,385.36 3,286.75
Al Rayan Islamic 4,176.28 4,032.60 4,077.50 4,105.25 4,150.15 4,195.05 4,222.80 4,267.70 4,379.60 4,522.22 4,306.03
Banks & Financials Services
MARK 46.85 45.65 46.05 46.30 46.70 47.10 47.35 47.75 48.63 52.06 50.47
CBQK 67.40 66.47 66.73 66.90 67.17 67.43 67.60 67.87 71.15 70.79 68.69
DHBK 57.10 55.63 56.09 56.37 56.83 57.29 57.57 58.03 57.62 58.81 59.86
QIBK 104.20 97.73 99.68 100.89 102.83 104.78 105.99 107.93 105.89 110.54 99.70
QIIK 83.50 80.77 81.61 82.13 82.97 83.81 84.33 85.17 83.55 85.92 83.78
Insurance
QATI 90.00 87.13 88.01 88.55 89.43 90.31 90.85 91.73 92.24 94.68 85.34
Consumer Goods & Services
MCGS 121.00 115.67 117.19 118.14 119.67 121.19 122.14 123.67 122.90 125.64 103.81
Industrials
IQCD 173.00 170.80 172.06 172.84 174.10 175.36 176.14 177.40 186.17 186.40 183.95
QEWS 191.50 186.10 187.93 189.07 190.90 192.73 193.87 195.70 186.63 187.06 184.85
GISS 96.80 91.33 92.90 93.87 95.43 97.00 97.97 99.53 109.02 115.06 103.61
QIGD 42.00 39.40 40.14 40.61 41.35 42.09 42.56 43.30 45.36 51.76 55.81
Real Estate
BRES 47.30 41.60 43.34 44.41 46.15 47.89 48.96 50.70 44.88 42.89 40.82
UDCD 23.60 22.53 22.92 23.15 23.53 23.92 24.15 24.53 25.70 27.52 25.85
ERES 15.00 14.54 14.73 14.84 15.03 15.22 15.33 15.52 17.71 18.72 21.38
MRDS 18.92 16.93 17.61 18.03 18.71 19.39 19.81 20.49 21.71 22.67 20.31
Telecommunication
ORDS 119.80 117.53 118.22 118.65 119.33 120.02 120.45 121.13 119.62 124.68 133.19
VFQS 16.20 14.97 15.38 15.63 16.04 16.45 16.70 17.11 18.24 19.65 18.35
Transportation
QGTS 23.19 22.67 22.82 22.91 23.06 23.21 23.30 23.45 23.44 23.99 23.31
QNNS 95.30 93.37 93.98 94.36 94.97 95.58 95.96 96.57 97.77 96.35 95.39
Source: Bloomberg, QNBFS Research; Note: Numbers in Italics denote moving averages that are above the given index level/stock price

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Definitions:
Candlestick: A chart that displays the high, low, opening and closing prices for a security in a single period. The body of the candle is made up by the opening
and the closing prices, i.e., the taller the body the greater the range between these two prices and vice versa. A colored candle denotes a closing price that is
lower than the opening price, while a white candle shows the opposite. The candlestick's shadows or wicks show the period's high and low prices and how they
compare to the opening and closing price. In general, the shape of the candle will vary upon the positions of the period's high, low, opening and closing prices.
Support: A level that could cause more buyers to step in in order to prevent the security from falling or causing the security price to head higher.
Resistance: An inverse of a support level. A resistance area or level could cause more sellers to step in in order to prevent the security from rising or causing the
security price to head lower.
SMA (Simple Moving Average): Is an arithmetic average, which calculates the average price of a security over a defined number of periods and is thus
considered a lagging indicator. SMAs used in our analysis refer to closing prices. In general, SMAs serve many purposes, such as a smoothing tool, an indicative
price direction and potential support/resistance levels.
Market Breadth: Breadth indicates the number of securities that have closed higher vs. the number of decliners in a particular exchange.
MACD (Moving Average Convergence/Divergence): Is a trading indicator, which shows changes in the strength, direction, momentum and duration of a trend in
a stock's price through a collection of three time series calculated from historical closing price data.
RSI (Relative Strength Index): Is a momentum indicator that compares a security’s price gains to its losses for a predetermined number of periods (we generally
use 14 periods). The RSI attempts to point out how a security, in relative terms, is in the overbought/oversold zone. Securities with a RSI above 70 could be
considered as overbought, and below 30 could be considered as oversold.
Pattern/Formation: Is a graphical presentation of a security’s price activity over a certain period of time. Formations come in different shapes (such as, head &
shoulders, triangles, flags, and so on). They can be used to identify potential trends, reversal of trends, price targets, entry and exit points, etc.
Fibonacci Retracements: Are horizontal lines that indicate expected areas of support/resistance for a security based on a predetermined price movement. These
levels are usually indicated by Fibonacci ratios of 23.6%, 38.2%, 50.0%, 61.8% and 100% from that particular movement.
Fibonacci Pivot and Intra-day Support/Resistance: A Pivot Point is generally used to formulate expected future support/resistance levels. From the base Pivot
Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.

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Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar
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