1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Masraf Al Rayan: Short-Term – Breakout
The QE Index declined around 36 points (-0.33%) to close at
11,137.59. The index witnessed a gap-down opening and breached
the support near 11,170.0 as bears were under full control. However,
the index rebounded from its day’s low of 11,069.93 and managed to
move above the 21-day moving average & 11,100.0. Meanwhile, the
index needs to hold onto the 11,100.0 level in order to proceed
toward 11,170.0. Any dip below 11,100.0 may test 11,082.06.
The QERI Index fell marginally and penetrated below the 21-day
moving average to close the session at 3,211.0. The index
momentarily dipped below the support near 3,200.0, but reversed as
buyers stepped in and quickly offset some of the weakness. However,
the index needs to move above the 21-day moving average on a
closing basis in order to keep its uptrend intact. Conversely, any
failure to move above this level may pull the index to test 3,200.0.
MARK cleared the resistances of QR35.0 and the descending
trendline, which had restricted its bullish move in the past in a single
swoop. Notably, volumes were also high on the breakout indicating
potential buyers stepping in. Moreover, the stock developed a bullish
Marubozu candle pattern indicating a likely advance from the current
level. Meanwhile, the RSI is moving up in a bullish manner, thus
supporting a higher move toward the QR35.40 level.
Widam Food Co.: Short-Term – Breakdown
Qatari Investors Group: Short-Term – Downmove
Vodafone Qatar: Short-Term – Breakdown
WDAM moved below the support of QR51.0 on Sunday and moved
further below yesterday penetrating below the QR50.30 level
indicating continued weakness in the stock. We believe the stock is
trending weak and may drift down further to test the QR49.30 level.
Meanwhile, the RSI and the MACD lines are in downtrend mode with
no immediate trend reversal signs. On the flip side, if the stock
manages to reclaim QR50.30 it may halt its downmove.
QIGD declined further and moved below the QR47.0 level. Moreover,
the stock has been moving along the descending trendline over the
past few days and is steadily drifting lower. We believe until the time
the stock trades below the resistance of this descending trendline the
upward movement seems to be in jeopardy. Meanwhile, both
momentum indicators are providing bearish signals indicating
continued weakness and a further downside target of QR46.0.
VFQS continued its downmove and breached the support of the 21day moving average. Moreover, with the RSI moving down further
from the mid-line and the MACD diverging away from the signal line in
a bearish manner, VFQS’ preferred direction seems to be on the
downside. We believe although the stock is trading close to its
immediate support of QR11.19, it may not cling onto it and move
lower to test the 55-day moving average.
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)
11,137.59
UP
UP
11,100.00
11,060.00
11,170.00
11,250.00
Al Rayan Islamic Index (QERI Index)
3,211.00
DOWN
UP
3,199.21
3,150.00
3,240.37
3,270.00
Masraf Al Rayan (MARK QD)*
35.10
UP
UP
34.15
33.50
35.50
36.00
Commercial Bank of Qatar (CBQK QD)
71.50
DOWN
UP
70.90
70.20
71.80
72.80
Doha Bank (DHBK QD)
64.00
FLAT
UP
63.30
62.21
64.80
66.00
Qatar Islamic Bank (QIBK QD)
75.80
UP
UP
75.00
74.00
76.00
77.00
Qatar International Islamic Bank (QIIK QD)
67.50
DOWN
UP
67.00
66.50
68.00
69.40
Qatar Insurance (QATI QD)
79.00
UP
UP
78.00
76.80
80.00
81.50
National Leasing Holding Co. (NLCS QD)
30.60
FLAT
DOWN
29.95
29.15
31.00
31.45
Widam Food Co. (WDAM QD)*
50.00
DOWN
DOWN
49.30
48.50
50.30
51.00
Al Meera Consumer Goods Co. (MERS)
146.60
UP
UP
145.90
142.70
150.00
151.50
Industries Qatar (IQCD QD)
178.40
UP
UP
178.30
174.60
182.50
185.00
Qatar Electricity & Water Co. (QEWS QD)
181.60
FLAT
UP
180.00
178.90
182.50
184.00
Gulf International Services (GISS QD)
77.70
UP
UP
77.00
76.00
79.00
80.00
Qatari Investors Group (QIGD QD)*
46.70
DOWN
UP
46.00
44.20
47.70
49.00
Barwa Real Estate Co. (BRES QD)
31.20
DOWN
UP
31.20
30.85
32.00
32.50
United Development Co. (UDCD QD)
22.70
DOWN
DOWN
22.38
22.00
22.84
23.10
Ooredoo (ORDS QD)
149.10
UP
UP
145.90
144.00
150.00
151.00
Vodafone Qatar (VFQS QD)*
11.21
DOWN
FLAT
11.19
11.00
11.44
11.60
Nakilat (QGTS QD)
21.00
FLAT
UP
20.74
20.50
21.07
21.32
Milaha (QNNS QD)
90.00
FLAT
UP
89.40
88.00
90.00
91.00
Banks and Financial Services
Banks and
Consumer Goods and Services
Consumer G
Industrials
Industrials
Real Estate
Real Estate
Telecom
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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