1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Qatar Islamic Bank: Short-Term – Bounce Back
The QE Index moved higher and gained around 90 points (0.93%) to
close at 9,733.19. There were some positive developments
registered by the index yesterday as it cleared both its moving
averages in a single swoop. Moreover, the index also surpassed the
descending trendline resistance near 9,700.0 which had restricted its
bullish move in the past. If the index can cling on to the support of
9,723.94, it may advance toward 9,770.0, else may test 9,700.0.
After threatening to move down on Monday, the QERI Index reversed
and rose around 0.42% to close at its intraday high of 2,786.70. The
index penetrated above the resistances of 2,782.80 and the 21-day
moving average along with the ascending trendline as buyers
stepped in and quickly offset the weakness. We believe if the index
can manage to move above the 55-day moving average, it may test
2,800. Failing to do so may pull it toward 2,782.80.
QIBK breached above the resistance of QR67.30 and the long term
bearish trendline and made further headway on Tuesday. We believe
QIBK is now approaching toward its next resistance of QR67.80. If
the stock can penetrate above this level it may confirm that an
upmove is underway. The RSI is supporting this bullish sentiment by
providing a bullish divergence, while the MACD is also about to cross
the signal line into positive territory.
Doha Bank: Short-Term – Bounce Back
Industries Qatar: Short-Term – Bounce Back
Vodafone Qatar: Short-Term – Bounce Back
DHBK respected the support of the ascending trendline and moved
higher to surpass both its resistances of QR54.50 and QR55.10 for
the first time since August. Moreover, the stock developed a bullish
Marubozu Candle pattern indicating a further rise in stock price. We
believe this strong breakout has bullish implications and may test
QR56.30. Meanwhile, the RSI is moving upward in a strong manner.
However, a dip below QR55.10 may result in consolidation.
IQCD cleared its resistances of the 55-day moving average and the
long term descending trendline at QR154.75 in a single trading
session. Moreover, IQCD developed a bullish Marubozu Candle
pattern indicating the stock may advance further from the current level
and test QR155.90. With both RSI and MACD lines moving higher, it
looks like the preferred direction for IQCD is on the upside. However,
a dip below QR154.75 may indicate a false breakout.
VFQS respected the support of QR9.0 and advanced to breach
above the resistances of the 21-day moving average and the
descending trendline. We believe the current higher push has enough
steam to surpass the 55-day moving average targeting the QR9.14
level. Moreover, the RSI has also shown a bullish divergence, thus
supporting our bullish view on the stock. Conversely, QR9.04 may be
the level to watch out for traders in case of any reversal signs.
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)
9,733.19
UP
UP
9,500.00
9,440.00
10,200.00
10,350.00
Al Rayan Islamic Index (QERI Index)
2,786.70
UP
FLAT
2,700.00
2,600.00
2,950.00
3,000.00
Banks and Financial Services
Masraf Al Rayan (MARK QD)
29.35
UP
UP
24.00
23.20
31.40
33.00
Commercial Bank of Qatar (CBQK QD)
67.20
DOWN
DOWN
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)*
55.30
UP
UP
42.00
39.50
57.14
58.00
Qatar Islamic Bank (QIBK QD)*
67.40
DOWN
DOWN
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
56.90
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)
61.90
UP
UP
58.50
57.00
62.30
63.30
National Leasing Holding Co. (NLCS QD)
30.50
DOWN
DOWN
29.50
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
48.90
DOWN
DOWN
47.50
46.70
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.60
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)*
154.90
UP
FLAT
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
157.20
DOWN
DOWN
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
56.70
UP
UP
30.50
29.50
58.50
60.15
Qatari Investors Group (QIGD QD)
31.50
UP
UP
20.36
20.00
31.80
33.50
Barwa Real Estate Co. (BRES QD)
26.45
UP
UP
22.80
19.50
29.25
29.90
United Development Co. (UDCD QD)
21.50
DOWN
DOWN
17.06
16.00
25.30
25.90
140.00
UP
FLAT
108.00
98.10
146.00
148.00
9.07
UP
UP
8.50
8.24
9.98
10.20
Nakilat (QGTS QD)
18.99
DOWN
DOWN
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
85.00
UP
UP
58.20
56.70
86.50
87.85
Consumer Goods and Services
Consumer G
Industrials
Industrials
Real Estate
Real Estate
Telecom
Ooredoo (ORDS QD)
Vodafone Qatar (VFQS QD)*
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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