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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
The QE Index extended its gains for the fourth straight session and
rose around 81 points (0.70%) to close at 11,562.87. The index
remained bullish during the day and breached the important
resistance of 11,520.55, as the bulls continued their domination over
the bears. We believe as long as the index stays above 11,520.55, it
will continue its bullish momentum and advance toward 11,600.0-
11,660.0 levels. Both the indicators suggest further upside.
Widam Food Co.: Short-Term – Breakout
WDAM surged 6.96% and surpassed its resistances of QR46.50, 55-
day moving average and the descending triangle at QR48.75 in a
single swoop. This strong resistance breach has bullish implications
and provides an upside target of QR50.50. Moreover, with volumes
also picking up on the rise, we believe that the stock may continue to
move ahead. However, a decline below QR48.75 may halt its
upmove. Meanwhile, both the indicators are looking strong.
Al Rayan Islamic Index: Short-Term – Upmove
The QERI Index continued its relentless rally and tagged another new
all-time high to close above the 3,550.0 level. The current higher push
and pick up in volumes suggest that the index may continue its
uptrend tagging new highs. Meanwhile, the bullishness in the RSI is
intact, while the MACD is diverging away from the signal line and is
growing more bullish, showing no immediate trend reversal signs.
Hence, it looks like this rally may continue for a longer duration.
Doha Bank: Short-Term – Upmove
DHBK continued its upmove and breached the immediate resistance
of QR62.0 yesterday. We believe if the stock manages to cling onto
QR62.0 on a closing basis; it may set the stage for a further higher
move and test the 55-day moving average, followed by QR63.30.
However, a pullback below QR62.0 warrants some caution.
Meanwhile, the RSI is growing bullish and has enough room before
slipping into the overbought territory, while the MACD is moving up.
Masraf Al Rayan: Short-Term – Upmove
MARK after trading predominantly flat over the past few sessions
moved higher and cleared the ascending triangle resistance at
QR39.10. Moreover, the stock developed a bullish Marubozu candle
pattern, indicating a likely continuation of this upmove. The recent
price action and spike in volumes indicate MARK may advance
further and test QR40.0. However, a dip below QR39.10 may result in
a pullback. Meanwhile, the RSI is moving up in a bullish manner.
Vodafone Qatar: Short-Term – Upmove
VFQS cleared the resistances of the ascending triangle at QR12.09,
which is also close to its 21-day moving average, after consolidating
below it over the past few days. Notably, volumes were also large on
the upmove, which is a positive development. We believe the current
higher push has enough steam to test and surpass its immediate
resistance at QR12.25 targeting QR12.40. Meanwhile, the RSI has
shown a bullish divergence, thus signifying strength.
Saugata Sarkar Keith Whitney Sahbi Kasraoui QNB Financial Services SPC
Head of Research Head of Sales Manager - HNWI Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 PO Box 24025
firstname.lastname@example.org email@example.com firstname.lastname@example.org Doha, Qatar
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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
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*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
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.
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) 11,562.87 UP UP 11,520.55 11,484.45 11,660.45 11,733.50
Al Rayan Islamic Index (QERI Index) 3,556.52 UP UP 3,533.01 3,490.49 3,580.00 3,600.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD)* 39.40 UP UP 39.10 38.00 40.00 40.60
Commercial Bank of Qatar (CBQK QD) 63.40 UP UP 61.67 60.92 63.67 64.58
Doha Bank (DHBK QD)* 62.10 UP DOWN 60.00 58.50 63.30 64.00
Qatar Islamic Bank (QIBK QD) 73.90 DOWN DOWN 72.80 71.50 75.00 76.00
Qatar International Islamic Bank (QIIK QD) 71.20 DOWN DOWN 70.30 69.40 72.80 74.40
Qatar Insurance (QATI QD) 64.70 UP UP 62.64 61.52 65.68 66.90
National Leasing Holding Co. (NLCS QD) 29.20 UP FLAT 28.00 27.52 29.95 30.25
Consumer Goods and Services Consumer G
Widam Food Co. (WDAM QD)* 49.15 UP UP 48.75 47.80 50.50 51.90
Al Meera Consumer Goods Co. (MERS) 152.00 FLAT UP 150.00 148.90 154.90 159.00
Industries Qatar (IQCD QD) 183.30 FLAT UP 181.40 180.00 184.50 190.00
Qatar Electricity & Water Co. (QEWS QD) 171.50 UP UP 170.91 168.00 174.36 176.64
Gulf International Services (GISS QD) 78.10 UP UP 75.20 73.20 78.80 80.00
Qatari Investors Group (QIGD QD) 55.00 UP DOWN 54.00 52.40 56.20 58.00
Barwa Real Estate Co. (BRES QD) 36.20 UP UP 35.80 34.80 36.80 37.40
United Development Co. (UDCD QD) 20.54 FLAT DOWN 20.00 19.75 21.00 21.30
Ooredoo (ORDS QD) 139.00 DOWN DOWN 138.50 136.00 141.00 143.50
Vodafone Qatar (VFQS QD)* 12.20 UP UP 12.09 11.90 12.25 12.40
Nakilat (QGTS QD) 20.20 DOWN DOWN 19.80 19.50 20.26 20.44
Milaha (QNNS QD) 89.90 DOWN UP 89.40 88.60 91.30 93.00