1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Pullback
The QE Index fell for the second consecutive session and dropped
around 428 points (-3.09%) on the back of heavy selling pressure.
The index penetrated below many important psychological levels as
well as the ascending trendline support in a single swoop, ending the
session below 13,450.0. Meanwhile, the index has its immediate
support at the 21-day moving average. Any sustained weakness
below this level may further drag the index to test 13,350.0.
Barwa Real Estate Co.: Short-Term – Pullback
BRES declined further and dipped below its important supports of
QR40.10, QR39.70 along with both the moving averages in a single
trading session, which is a negative sign. Moreover, the stock has
been on a declining mode after peaking at QR43.45. We believe the
stock may continue to weaken further and move down toward
QR38.40. However, a close above QR39.70 may halt its pullback.
Meanwhile, both indicators are indicating weakness.
Al Rayan Islamic Index: Short-Term – Pullback
The QERI Index continued its southbound journey for the third
straight session and witnessed a sharp decline of -3.33%. Moreover,
the index slipped below the key levels of 4,770.0 and 4,650.0 in a
single trading session, caving in under selling pressure. We believe
this strong breach of supports has bearish implications. The index
may extend its losses further, if it retreats below the 21-day moving
average and drift lower toward the 4,530.0 level.
Ooredoo: Short-Term – Pullback
ORDS breached a series of important supports and suffered severe
selling pressure on Thursday. Moreover, the stock developed a long
bearish Marubozu candlestick pattern, indicating a likely continuation
of this pullback. Meanwhile, the RSI has shown a negative
divergence, while the MACD is moving in a bearish manner,
indicating further downside. We believe the stock may continue its
decline and test QR113.80, followed by QR110.50.
Masraf Al Rayan: Short-Term – Pullback
MARK fell sharply and penetrated below the important supports of
QR55.80 and QR54.0 along with both the moving averages in a
single swoop. The stock has been showing signs of weakness since
failing to move above QR59.90. We believe although the stock is
trading close to its immediate support of QR51.80, it seems unlikely it
may cling onto it. MARK may drift down further to test QR49.75.
Meanwhile, both indicators are providing bearish signals.
Vodafone Qatar: Short-Term – Pullback
VFQS witnessed heavy selling pressure on Thursday and breached
its key supports of QR21.40 and QR20.0 along with both the moving
averages in a single swoop. With the RSI showing negative slope,
and the MACD providing bearish crossover, it appears VFQS is likely
to continue its pullback. The stock has its immediate support at
QR19.29; a drop below which may drag the stock further down
toward the QR18.75 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) 13,443.16 FLAT UP 13,350.54 13,195.88 13,500.00 13,584.34 Al Rayan Islamic Index (QERI Index) 4,627.60 FLAT UP 4,600.00 4,528.58 4,638.81 4,707.59 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)*
52.00
DOWN
DOWN
51.80
49.75
54.00
55.80 Commercial Bank of Qatar (CBQK QD) 68.10 UP UP 67.30 66.50 68.30 69.00
Doha Bank (DHBK QD)
61.00
UP
UP
61.00
60.00
62.00
63.10 Qatar Islamic Bank (QIBK QD) 119.00 UP UP 117.40 115.00 122.00 125.00
Qatar International Islamic Bank (QIIK QD)
87.40
UP
UP
86.10
85.00
87.80
89.00 Qatar Insurance (QATI QD) 100.00 UP UP 99.00 98.00 101.50 103.00
Al Khalij Commercial Bank (KCBK QD)
21.70
DOWN
DOWN
21.49
21.00
22.00
22.35 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
129.00
UP
UP
126.50
122.60
130.00
132.00
Al Meera Consumer Goods Co. (MERS QD)
187.20
DOWN
UP
185.00
183.00
187.80
190.00 Industrials
Industrials
Industries Qatar (IQCD QD)
193.50
UP
UP
192.10
191.00
194.60
197.70 Qatar Electricity & Water Co. (QEWS QD) 171.00 DOWN DOWN 170.91 168.00 173.00 176.64
Gulf International Services (GISS QD)
117.20
DOWN
UP
115.00
111.90
118.10
121.00 Qatari Investors Group (QIGD QD) 59.00 UP UP 57.70 56.20 59.70 60.60 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)*
39.10
DOWN
DOWN
38.40
37.40
39.70
40.10 United Development Co. (UDCD QD) 29.15 DOWN FLAT 29.05 28.55 29.85 30.00 Telecom
Telecom
Ooredoo (ORDS QD)*
114.30
DOWN
DOWN
113.80
110.50
115.90
117.70 Vodafone Qatar (VFQS QD)* 19.34 DOWN DOWN 19.29 18.75 20.00 20.78 Transportation
Transportation
Nakilat (QGTS QD)
23.50
DOWN
FLAT
23.00
22.45
23.90
24.12 Milaha (QNNS QD) 89.00 DOWN DOWN 88.70 87.00 89.40 90.20