1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Bounce Back
Al Rayan Islamic Index: Short-Term – Bounce Back
United Development Co.: Short-Term – Bounce Back
The QE Index extended its gains by around 38 points (0.38%) and
cleared the resistance of 9,934.08 to close above 9,950.0. Strong
buying pushed the index higher. We believe the index is in uptrend
mode and may test the 10,000.0 psychological level. Moreover, the
bullish RSI and the rising MACD line provide the index an upward
bias. On the flip side, if the index dips below the support of 9,934.08,
it may result in consolidation before the next upmove.
The QERI Index gained around 0.42% to close the session at
2,842.58. The index penetrated above the resistance of 2,835.40 as
bulls were in full control. Moreover, the index closed above this level
for the first time since August after consolidating below it for multiple
weeks indicating a bullish signal. We believe the index may continue
its rally and advance toward 2,850.0 as it has strong momentum
going in. Meanwhile, both indicators support a higher move.
UDCD surpassed the resistance of QR22.39 on the back of large
volumes yesterday, indicating rising buying interest. Moreover, the
RSI is moving up strongly toward the overbought territory, while the
MACD is widening away from the signal in a bullish manner. The
stock is steadily moving up over the past few days and now seems
poised to test and surpass QR22.70 targeting QR23.15. However, if
the stock dips below QR22.39 it may indicate a false breakout.
Milaha: Short-Term – Bounce Back
Nakilat: Short-Term – Bounce Back
Qatar International Islamic Bank: Short-Term – Bounce Back
QNNS has been in uptrend mode and tagged another new all-time
high yesterday. Moreover, the stock has been witnessing a strong
rally and is persistently tagging higher highs over the past few days.
The current strong momentum may continue to push prices higher.
With both momentum indicators moving up strongly, we believe the
stock may continue to advance and tag new highs. Conversely, a
retreat below QR88.15 on a closing basis may halt its uptrend.
QGTS cleared the resistance of QR19.34 which is also in proximity to
the 55-day moving average (currently at QR19.34). Notably, volumes
were also large on the breakout indicating strength in the price action.
We believe if the stock manages to cling on to the support of
QR19.34 level on a closing basis, it may move higher and test
QR20.0. Moreover, the RSI and the MACD lines are providing bullish
signals indicating an advance, thus supporting our bullish outlook.
QIIK breached the resistance of QR58.20 for the first time since
August after consolidating below it over the past few weeks.
Moreover, the stock has been in uptrend mode ever since it took
support near the QR56.50 level. We believe the stock may now
march ahead and test its August high of QR59.0. However, a dip
below QR58.20 on a closing basis may result in a sideways
movement. Meanwhile, both indicators are in uptrend mode.
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)
9,952.87
UP
UP
9,800.00
9,700.00
10,200.00
10,350.00
Al Rayan Islamic Index (QERI Index)
2,842.58
UP
UP
2,700.00
2,600.00
2,950.00
3,000.00
Banks and Financial Services
Masraf Al Rayan (MARK QD)
29.90
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)
56.00
UP
UP
42.00
39.50
57.14
58.00
Qatar Islamic Bank (QIBK QD)
68.70
UP
FLAT
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)*
58.30
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)
64.30
UP
UP
58.50
57.00
64.60
65.30
National Leasing Holding Co. (NLCS QD)
30.10
DOWN
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
48.50
DOWN
DOWN
47.50
46.70
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.30
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
163.50
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
160.20
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
59.10
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
31.80
UP
UP
20.36
20.00
32.30
33.50
Barwa Real Estate Co. (BRES QD)
26.85
UP
UP
22.80
19.50
29.25
29.90
United Development Co. (UDCD QD)*
22.59
UP
UP
17.06
16.00
25.30
25.90
137.10
DOWN
DOWN
108.00
98.10
146.00
148.00
9.10
UP
UP
8.50
8.24
9.98
10.20
Nakilat (QGTS QD)*
19.50
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)*
88.30
UP
UP
58.20
56.70
88.90
89.70
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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