1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
The QE Index snapped its four-day gaining streak and shed around
58 points (-0.43%) to close the day below the 13,500.0 psychological
level. The index failed to make any further headway above 13,584.0
and retreated on the back of profit-booking. Meanwhile, the index has
its immediate support at 13,450.0. The upmove remains intact, until
the index stays above the 13,450.0 level. However, any dip below
this level will result in a pullback.
Qatar Electricity & Water Co.: Short-Term – Pullback
QEWS declined further yesterday after breaching the support of
QR190.0 on Sunday. The stock has been facing stiff resistance at the
descending trendline and is struggling to move above it even after
repeated failed attempts in the past. We believe the stock may
continue to weaken further and drift lower toward QR188.0. However,
the stock may halt its pullback if it manages to climb above the
QR190.0 level on a closing basis.
Al Rayan Islamic Index: Short-Term – Neutral
The QERI Index halted its northward journey and ended the session
in the red, losing around 41 points (-0.91%) to settle near the 4,500.0
level. The index momentarily moved above 4,550.0, but quickly
reversed surrendering all its gains, as traders opted to book profits.
On the downside, the index has its support at 4,476.0. The bulls need
not worry as long as the index trades above this level. Conversely,
any penetration below the 4,476.0 level may further drag the index.
Mazya Qatar Real Estate Dev.: Short-Term – Upmove
MRDS built on its gains and rose 1.19% clearing its important
resistance of QR23.89. The stock found support near the 55-day
moving average and ended in a small bullish candlestick formation on
the daily chart. The RSI has shown a bullish divergence, while the
MACD line has crossed the signal line, suggesting the upward move
may continue. Traders may consider buying the stock at the current
level for a target of QR24.25 with a near-term stop loss of QR23.65.
Commercial Bank of Qatar: Short-Term – Upmove
CBQK advanced 0.55% and surpassed the key resistance of
QR72.50 on the back of increased participation. Moreover, the stock
did not weaken even after market turbulence, providing a positive
signal. Meanwhile, CBQK has been in upmove mode and is
registering gains since moving above the 55-day moving average.
With the RSI in the buy zone, the stock may advance further and test
QR73.40. However, a retreat below QR72.50 may be a bearish sign.
Qatari Investors Group: Short-Term – Pullback
QIGD formed a shooting star candlestick formation on Sunday, which
often leads to either consolidation or decline. Moreover, the stock
drifted lower yesterday and penetrated below its support of QR49.75,
thus confirming this bearish pattern. Further the MACD line is in
downtrend mode. We believe the stock may continue its decline and
further move down toward QR47.70. However, the stock may
rebound if it manages to reclaim the QR49.75 level.

2. Contacts
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Head of Research Senior Research Analyst Senior Research Analyst Manager - HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa 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
*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 55- day 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. Name (Ticker) Last Close Trend Support Resistance
Short Term
Long Term
First
Second
First
Second Qatar Exchange Index (QE Index) 13,486.13 DOWN DOWN 13,447.17 13,400.00 13,500.00 13,584.34 Al Rayan Islamic Index (QERI Index) 4,506.95 DOWN DOWN 4,476.45 4,444.86 4,528.58 4,550.00 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
52.00
DOWN
DOWN
51.80
50.40
52.80
53.40 Commercial Bank of Qatar (CBQK QD)* 72.80 UP UP 72.50 71.50 73.40 74.10
Doha Bank (DHBK QD)
58.20
FLAT
DOWN
58.00
57.00
59.20
60.00 Qatar Islamic Bank (QIBK QD) 115.30 FLAT UP 115.00 113.00 117.40 118.90
Qatar International Islamic Bank (QIIK QD)
86.50
DOWN
DOWN
86.10
84.90
87.30
88.00 Qatar Insurance (QATI QD) 97.30 DOWN DOWN 97.00 94.60 99.00 100.00 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
127.00
FLAT
DOWN
126.50
124.75
128.80
131.50 Industrials
Industrials
Industries Qatar (IQCD QD)
192.50
UP
UP
191.50
190.00
193.50
194.60 Qatar Electricity & Water Co. (QEWS QD)* 189.10 UP UP 188.00 186.00 190.00 192.00
Gulf International Services (GISS QD)
120.00
FLAT
DOWN
119.50
118.10
121.00
122.50 Qatari Investors Group (QIGD QD)* 48.90 DOWN DOWN 47.70 46.90 49.75 51.00 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)
40.60
FLAT
DOWN
40.20
39.70
41.00
41.80 United Development Co. (UDCD QD) 26.65 DOWN DOWN 26.45 26.00 26.70 27.35
Ezdan Holding Group (ERES QD)
18.50
DOWN
DOWN
18.50
18.10
18.97
19.36 Mazaya Qatar Real Estate Development (MRDS QD)* 23.90 UP FLAT 23.89 23.65 24.25 25.00 Telecom
Telecom
Ooredoo (ORDS QD)
125.80
DOWN
DOWN
124.90
123.70
126.00
128.00 Vodafone Qatar (VFQS QD) 20.62 DOWN DOWN 20.00 19.75 20.79 21.00 Transportation
Transportation
Nakilat (QGTS QD)
24.14
FLAT
DOWN
24.12
23.90
24.45
24.61 Milaha (QNNS QD) 97.50 UP UP 96.50 95.10 97.80 98.20