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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
The QE Index recovered partly from Sunday’s losses, rising 0.62% to close at 13,968.91. The index tested the 14,000 level for the third consecutive day, touching an intra-day high of 14,012.56, but was unable to close above it. The elusive 14,000 level is acting as a strong psychological resistance. A close above this level would give a boost to the index to make further highs. However, a slip from here could take the index down toward its support of 13,847.
Al Meera Consumer Goods Co.: Short-Term – Pull back
MERS has been testing its support level of QR185 over the past seven consecutive trading sessions. The stock looks weak on the chart with both the RSI and the MACD trending lower. A close below QR185 can take the stock to QR181.40, below which it can test the QR176.10 level. However, investors should turn optimistic if MERS reverses and closes above its 21-day moving average (at QR189.64), as that may signal the beginning of a renewed uptrend.
Al Rayan Islamic Index: Short-Term – Neutral
The QERI Index gained 0.42% to close at 4,712.22. However, both the indicators for the index remain weak. The index has been consolidating at the current level over the last seven trading sessions. A significant move from here would indicate the next short-term trend for the index. A close below the 4,700 level may attract further selling pressure, leading the index to test its support of 4,638. However, a close above 4,770 would indicate an uptrend.
Qatar Insurance: Short-Term – Pull back
After a strong uptrend since the middle of June, QATI has been consolidating around the current level of QR99.50 for the past few trading sessions. The MACD has given a negative crossover, while the RSI is beginning to pull back from the overbought zone. If the stock slips back from here, it can test its 21-day moving average (at QR97.24) and its next support at QR95.30. However, investors need to be cautious if the stock closes above QR101.
Gulf International Services: Short-Term – Pull back
GISS rose 0.49% to close at QR122.50. The RSI has been making lower lows and lower highs, indicating weakness in the stock. A move below the 21-day average (currently at QR119.96) will attract selling pressure. In such a case, the stock may test its support level of QR118.10 and then QR115.0. However, a close above the QR123 level would take the stock to new highs with no major resistance levels seen in the near-term.
Barwa Real Estate Co.: Short-Term – Upmove
BRES formed a bullish Marobuzo pattern, closing at the highest point of the day at QR40.85. The stock is just below its 21-day moving average (at QR41.10), a close above which can take it to QR41.80 and then to its next resistance of QR42.80. On the downside, BRES has support at QR41.10. Investors should exercise caution if the stock breaks this support on a closing basis. The RSI is trending higher, while the MACD has converged with the signal line.

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.
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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) 13,968.91 UP UP 13,950.00 13,909.87 13,993.34 14,039.02 Al Rayan Islamic Index (QERI Index) 4,712.22 UP UP 4,707.59 4,685.00 4,770.31 4,811.58 Banks and Financial Services
Masraf Al Rayan (MARK QD)
56.20
UP
UP
55.80
54.00
57.30
58.20 Commercial Bank of Qatar (CBQK QD) 74.60 UP UP 72.50 71.80 75.00 76.50
Doha Bank (DHBK QD)
63.00
UP
UP
61.40
61.00
64.00
64.50 Qatar Islamic Bank (QIBK QD) 117.50 UP UP 117.40 115.00 120.00 121.00
Qatar International Islamic Bank (QIIK QD)
89.50
UP
UP
89.00
87.80
90.50
93.50 Qatar Insurance (QATI QD)* 99.50 UP UP 97.24 95.30 101.00 102.50
Al Khalij Commercial Bank (KCBK QD)
22.50
UP
UP
22.49
22.35
22.85
22.99 Consumer Goods and Services
Medicare Group (MCGS QD)
130.00
UP
UP
126.50
122.80
135.00
137.50
Al Meera Consumer Goods Co. (MERS QD)*
185.00
DOWN
UP
185.00
181.40
188.00
192.50 Industrials
Industries Qatar (IQCD QD)
190.00
UP
UP
186.00
184.00
192.50
195.00 Qatar Electricity & Water Co. (QEWS QD) 190.00 UP UP 188.00 186.00 190.00 192.00
Gulf International Services (GISS QD)*
122.50
UP
UP
121.00
118.10
123.00
124.10 Qatari Investors Group (QIGD QD) 57.40 DOWN UP 56.20 54.00 58.00 59.00 Real Estate
Barwa Real Estate Co. (BRES QD)*
40.85
FLAT
UP
40.10
39.70
41.00
41.80 United Development Co. (UDCD QD) 29.10 DOWN UP 29.05 28.55 29.50 30.25 Telecom
Ooredoo (ORDS QD)
132.90
UP
DOWN
132.00
129.70
134.00
136.00 Vodafone Qatar (VFQS QD) 21.45 UP UP 21.40 21.00 21.97 22.10 Transportation
Nakilat (QGTS QD)
24.89
FLAT
UP
24.48
24.12
25.30
25.90 Milaha (QNNS QD) 94.50 DOWN FLAT 93.00 91.30 95.10 96.50