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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index continued its rally and tagged a new 52-week high of
12,465.50, but later trimmed its gains to close the session at
12,397.21. However, the possibility of profit-booking cannot be ruled
out after witnessing strong gains over the past few days. The index
has its intermediate support near the 12,375.0 level. We believe if the
index manages to stay above this level, it may advance further, or
else it may drift down to test 12,300.0.
Qatar International Islamic Bank: Short-Term – Upswing
QIIK surged 6.64% and tagged a 52-week high on Thursday. The
stock has been on an uptrend mode since moving above the 21-day
moving average, and is gaining strength over the past few days. We
believe with a spike in volumes, the stock may continue its advance
and likely test the next level of QR84.40, followed by QR86.80.
Meanwhile, the RSI is holding strong in the overbought territory, while
the MACD is diverging away in a bullish manner.
Al Rayan Islamic Index: Short-Term – Uptrend
The QERI Index extended its rally tagging yet another all-time high to
settle above the 4,000.0 mark. Notably, this was the index’s 13th
consecutive day gains. The index is currently trading in an
unchartered territory and has no resistance level. Meanwhile, both the
indicators are looking strong and are providing no immediate trend
reversal signals. This suggests that the index may continue to tag
Barwa Real Estate Co.: Short-Term – Pullback
BRES failed to make any further headway above QR38.40 and
reversed, penetrating below the support level of QR37.40. We believe
although the stock is trading close to its immediate support of
QR36.80, it is unlikely that BRES may cling onto it and decline further
to test the 21-day moving average. However, a close above QR37.40
may halt its downmove. Meanwhile, the RSI is pointing down, while
the MACD has crossed the signal line into the negative territory.
Qatar Islamic Bank: Short-Term – Upmove
QIBK surpassed both the resistances of QR77.0 and the ascending
triangle at QR78.80 in a single swoop on the back of large volumes,
which is a positive signal. The stock faces its next resistance at
QR80.20. If QIBK manages to trade above this level on a closing
basis, it may rally further and test QR81.70. However, on the
downside, traders should watch out for QR78.80 as it now acts as a
support level. Both indicators look strong for a further advance.
Ooredoo: Short-Term – Pullback
ORDS pulled back after testing its resistance near QR151.0 and
breached its support of QR149.0. Notably, volumes were also large
on the decline, indicating a negative sign. Moreover, the stock
developed a bearish piercing candle pattern, which usually indicates a
reversal in the bullish trend. We believe the stock may continue to drift
down further and test its immediate support of QR145.30, which is
also in proximity to the 55-day moving average.
Saugata Sarkar Keith Whitney Sahbi Kasraoui QNB Financial Services SPC
Head of Research Head of Sales Manager - HNWI Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6534 Tel: (+974) 4476 6533 Tel: (+974) 4476 6544 PO Box 24025
email@example.com firstname.lastname@example.org email@example.com 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
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*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
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.
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) 12,397.21 UP UP 12,300.00 12,216.75 12,450.00 12,513.25
Al Rayan Islamic Index (QERI Index) 4,007.19 UP UP 3,952.00 3,900.00 4,030.00 4,050.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD) 43.80 UP UP 42.00 40.00 45.00 48.00
Commercial Bank of Qatar (CBQK QD) 69.70 UP UP 67.50 65.75 70.00 71.90
Doha Bank (DHBK QD) 62.10 UP FLAT 59.23 58.20 63.30 64.50
Qatar Islamic Bank (QIBK QD)* 79.70 UP UP 78.80 77.00 80.20 81.70
Qatar International Islamic Bank (QIIK QD)* 83.50 UP UP 81.50 80.00 84.40 86.80
Qatar Insurance (QATI QD) 74.40 UP UP 72.40 71.00 75.00 76.50
Al Khalij Commercial Bank (KCBK QD) 22.64 UP UP 21.80 21.50 23.00 23.30
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD) 78.90 UP UP 76.40 75.40 79.00 80.00
Al Meera Consumer Goods Co. (MERS QD) 181.00 UP UP 175.00 164.00 182.00 185.00
Industries Qatar (IQCD QD) 184.50 UP FLAT 181.40 178.30 187.50 190.00
Qatar Electricity & Water Co. (QEWS QD) 185.20 UP UP 182.00 180.00 188.00 190.00
Gulf International Services (GISS QD) 91.00 UP UP 90.00 86.60 93.00 95.00
Qatari Investors Group (QIGD QD) 59.00 UP UP 58.00 56.20 61.30 64.80
Barwa Real Estate Co. (BRES QD)* 37.00 UP UP 36.80 35.70 38.40 39.20
United Development Co. (UDCD QD) 22.40 UP UP 22.00 21.69 22.66 23.00
Ooredoo (ORDS QD)* 147.90 UP UP 145.30 143.50 149.00 151.00
Vodafone Qatar (VFQS QD) 13.80 UP UP 12.99 12.66 14.00 14.23
Nakilat (QGTS QD) 21.35 UP UP 21.15 20.90 21.83 22.00
Milaha (QNNS QD) 97.00 UP UP 96.50 95.10 98.40 100.10