1. Page 1 of 2
TECHNICAL ANALYSIS: QSE INDEX AND KEY STOCKS TO CONSIDER
QSE Index: Short-Term – Bounce Back
The QSE Index ended the day in the green and bounced back to
gain around 62 points (0.46%), following severe profit-booking in the
previous session. The index witnessed a gap-up opening and
reclaimed 13,584.0; however, it trimmed its gains after reaching an
intraday high of 13,660.37. We believe the index may extend its gains
further, if it sustains above 13,584.0. Conversely, any retreat below
13,584.0 may result in a pullback.
Qatar Islamic Bank: Short-Term – Pullback
QIBK has been experiencing steady decline since topping the current
rally at around QR116.0. The stock penetrated below its important
support of QR110.0, providing a negative signal. Further, the stock
developed a bearish Marubozu candlestick formation, indicating a
likely continuation of this pullback. With both the indicators pointing
down, the stock could drift down further and test QR107.0. However,
a close above QR110.0 may halt its pullback.
Al Rayan Islamic Index: Short-Term – Bounce Back
The QERI Index rebounded and rose around 33 points (0.73%),
responding to its fall on Wednesday. The index got off to a positive
start and recaptured the 21-day moving average and 4,529.0 in a
single swoop. However, traders are advised to wait and watch for any
further follow through to Thursday’s bounce back. Meanwhile, any
decline below the 21-day moving average may drag the index down
to test the 4,500.0 psychological level.
Industries Qatar: Short-Term – Rebound
IQCD rebounded and gained around 1.15% to reclaim the QR193.50
level. The stock has been moving along the ascending channel over
the past few days and is gaining strength. Moreover, the stock ended
by forming a bullish candlestick formation on daily charts, indicating a
likely continuation of this rebound. With the RSI in the buy mode, we
believe the stock may advance further to test QR197.70. However,
any dip below QR193.50 may pull the stock down.
Barwa Real Estate Co.: Short-Term – Upmove
BRES built on its gains and advanced 2.62% on the back of higher
participation, reflecting optimism among traders. The stock is currently
sitting exactly on its resistance of QR45.0. Any move above this level
may spark additional buying interest and push the stock further to test
QR45.60. However, any failure to clear QR45.0 may result in
consolidation. Meanwhile, both the indicators are positively poised,
signifying a further upside potential for the stock.
Ooredoo: Short-Term – Pullback
ORDS failed to make any further headway above the descending
trendline and breached its important support of QR120.50 for the first
time since August. The stock has been under sustained selling
pressure and is moving along the descending trendline over the past
few days. Further, both the momentum indicators are in a downtrend
mode. Traders could consider selling the stock at the current level for
a target of QR117.70 with a stop loss of QR120.50.

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 Stock 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.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
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 QSE 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 Stock Exchange Index (QSE Index) 13,590.49 UP DOWN 13,584.34 13,500.00 13,650.00 13,753.36 Al Rayan Islamic Index (QERI Index) 4,530.33 UP DOWN 4,528.58 4,500.00 4,584.50 4,638.81 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
50.20
DOWN
DOWN
49.60
48.50
50.40
51.80 Commercial Bank of Qatar (CBQK QD) 73.40 UP UP 72.50 71.50 73.40 74.30
Doha Bank (DHBK QD)
58.70
UP
DOWN
58.00
57.20
59.20
60.50 Qatar Islamic Bank (QIBK QD)* 109.20 DOWN DOWN 107.00 104.50 110.00 111.00
Qatar International Islamic Bank (QIIK QD)
85.40
DOWN
DOWN
84.90
84.00
86.10
87.30 Qatar Insurance (QATI QD) 98.00 FLAT FLAT 97.00 94.50 98.00 99.00 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
125.00
FLAT
DOWN
124.75
121.50
126.50
128.80 Industrials
Industrials
Industries Qatar (IQCD QD)*
194.00
UP
UP
193.50
191.00
194.60
197.70 Qatar Electricity & Water Co. (QEWS QD) 186.20 FLAT DOWN 186.00 184.00 188.00 190.00
Gulf International Services (GISS QD)
124.70
UP
UP
124.10
122.50
125.50
127.00 Qatari Investors Group (QIGD QD) 48.85 DOWN DOWN 47.70 46.90 48.90 49.75 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)*
45.00
UP
UP
43.80
43.20
45.00
45.60 United Development Co. (UDCD QD) 25.70 DOWN DOWN 25.55 25.10 26.10 26.35
Ezdan Holding Group (ERES QD)
19.69
UP
FLAT
19.50
19.36
19.84
20.04 Mazaya Qatar Real Estate Development (MRDS QD) 23.75 UP DOWN 23.35 23.00 23.89 24.12 Telecom
Telecom
Ooredoo (ORDS QD)*
119.10
DOWN
DOWN
117.70
115.87
120.50
121.50 Vodafone Qatar (VFQS QD) 19.83 DOWN DOWN 19.72 19.29 20.00 20.40 Transportation
Transportation
Nakilat (QGTS QD)
24.33
UP
FLAT
24.12
23.90
24.45
24.61 Milaha (QNNS QD) 100.00 UP UP 98.80 98.30 100.10 102.00