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 – Bounce Back
The QE Index declined around 35 points (-0.34%) to close the
session at 10,336.50. The index remained bearish throughout the
day and penetrated below the important support near 10,360.0. The
next support lies near the 10,300.0 psychological level. Any
sustained weakness below this level may pull the index to test
10,250.0. On the flip side, the index needs to move above the
10,360.0 level in order to keep its upward momentum intact.
The QERI Index witnessed some profit-booking after tagging a new
all-time high yesterday. The index dipped below the support near
3,048.0 as sellers proved to be more dominant and entered the
congestion zone. We believe the index will continue to oscillate in the
range of 3,036.0-3,048.0. Any sustained move above or below these
levels may decide the next direction of the index, thus supporting our
neutral view.
MARK cleared the resistance of QR33.50 and tagged a new all-time
high yesterday on the back of increased volumes. We believe based
on the current higher push MARK is poised to tag a new high.
Moreover, the RSI is holding strongly in the overbought territory, while
the MACD is diverging away from the signal line in a bullish manner
indicating a further rise. However, a dip below QR33.50 may result in
consolidation.
Milaha: Short-Term – Pull Back
Vodafone Qatar: Short-Term – Bounce Back
Industries Qatar: Short-Term – Pull Back
QNNS penetrated below the support of QR86.0 on the back of large
volumes which is a negative sign. We believe the stock is trending
weak and may not hold its support near the 55-day moving average
(currently at QR84.68) and move down to test QR84.0. Moreover, the
RSI and the MACD lines are in downtrend mode and are showing no
immediate trend reversal signs indicating that the weakness will
persist for a longer period of time.
VFQS breached the resistance of QR11.44 and tagged a new 52week high yesterday. Volumes were also large on the breakout
indicating rising buying interest. Moreover, the stock developed a
bullish Marubozu candle pattern indicating a likely advance. We
believe the stock is trending strong over the past few days and may
proceed toward QR12.0. In addition, the RSI and the MACD lines are
moving up, thus reinforcing our bullish outlook.
IQCD fell below the supports of QR166.50 and the 21-day moving
average (currently at QR166.25) in a single swoop. We believe as
long as the stock trades below the descending trendline the upward
movement seems to be in jeopardy and may drift lower to test
QR165.0. Moreover, the RSI has shown a bearish divergence while
the MACD line is converging away from the signal line in a bearish
manner. However, a close above QR166.25 may halt its downmove.
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)
10,336.50
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,044.70
UP
UP
3,000.00
2,900.00
3090.00
3,125.00
Masraf Al Rayan (MARK QD)*
33.65
UP
UP
24.00
23.20
34.25
34.90
Commercial Bank of Qatar (CBQK QD)
69.00
FLAT
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.20
DOWN
UP
42.00
39.50
58.15
59.20
Qatar Islamic Bank (QIBK QD)
69.60
UP
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
60.80
UP
UP
47.90
45.00
62.12
62.78
Qatar Insurance (QATI QD)
67.50
UP
UP
58.50
57.00
69.10
70.00
National Leasing Holding Co. (NLCS QD)
31.15
UP
UP
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
51.70
UP
UP
47.00
46.25
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.00
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)*
165.90
DOWN
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
166.70
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.70
DOWN
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
40.65
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)
29.70
UP
UP
22.80
19.50
30.50
30.85
United Development Co. (UDCD QD)
23.10
FLAT
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)
136.30
DOWN
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)*
11.59
UP
UP
8.50
8.24
12.15
13.32
Nakilat (QGTS QD)
20.90
UP
UP
15.08
14.52
21.70
22.80
Milaha (QNNS QD)*
85.00
DOWN
FLAT
58.20
56.70
90.25
95.50
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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