The document provides a technical analysis of the QE Index, Al Rayan Islamic Index, and several Qatar stocks. It identifies short-term uptrends for the indexes and recommends several stocks as short-term bounce back opportunities, including Qatar Electricity & Water Co., United Development Co., and Industries Qatar. The analysis includes charts and descriptions of price trends, momentum indicators, support and resistance levels, and suggests whether stocks are expected to bounce back or pull back in the short term.

1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Bounce Back
Al Rayan Islamic Index: Short-Term – Bounce Back
Qatar Electricity & Water Co.: Short-Term – Bounce Back
The QE Index continued its uptrend and rallied around 57 points
(0.56%) tagging a new 52-week high, surpassing its previous best of
10,109.50 back in August. Moreover, the index cleared the 10,100.0
mark on the back of large volumes and closed at its highest level
since 2008. We believe the index is currently in strong uptrend mode
and may now approach the 10,200.0 level. Meanwhile, both
momentum indicators are moving up in a bullish manner.
The QERI Index moved higher around 0.36% to close at 2,889.36.
The index is registering strong gains since last week and is showing
strength to move higher toward the 2,900.0 level. We believe the
recent price action and pick-up in volumes indicate that this rally may
not fizzle out soon. Meanwhile, the RSI is trending strong in the
overbought territory, while the MACD is diverging away from the
signal line with no near-term trend reversal signs.
QEWS open gapped-up and penetrated above the resistance of
QR165.0 yesterday. The gains were supported by rising volumes,
indicating further strength in the price action. Meanwhile, the
bullishness in the RSI is intact, while the MACD is moving further
away from the signal line on the upside. We believe the stock is
moving up aggressively over the past two days; it may test and
surpass QR167.0 targeting QR169.80.
Milaha: Short-Term – Pull Back
United Development Co.: Short-Term – Bounce Back
Industries Qatar: Short-Term – Bounce Back
QNNS dipped below the support of QR87.30 yesterday after topping
the rally near QR89.0. The stock is experiencing selling pressure and
is underperforming over the past few days. We believe QNNS may
drift lower and test support at QR86.0, which is also in proximity to the
21-day moving average (currently at QR86.0). Moreover, with both
the RSI and the MACD lines moving down, it seems QNNS’ preferred
direction is toward the downside.
UDCD moved higher by around 1.27% yesterday on the back of large
volumes indicating rising buying interest. The stock is currently at the
threshold of the QR23.15 resistance level. Given the strong
momentum indicators, which are pointing higher it looks like UDCD
may be ready for a breakout above this level and may test QR23.55,
thus reinforcing our bullish view on the stock. However, a decline
below the QR23.0 level on a closing basis may be a bearish sign.
IQCD cleared the key resistance of QR163.50 after consolidating
below this level over the past few days. Notably, volumes were also
large on the breakout which is a positive sign for the buyers. The next
resistance is at the QR165.0 level. A breakout above this level would
suggest a continued rise and a possible test of the QR166.50 level.
Moreover, the RSI is moving strongly in the overbought territory, while
the MACD is widening away from the signal line in a bullish manner.
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)
10,128.52
UP
UP
9,800.00
9,700.00
10,200.00
10,350.00
Al Rayan Islamic Index (QERI Index)
2,889.36
UP
UP
2,700.00
2,600.00
2,950.00
3,000.00
Masraf Al Rayan (MARK QD)
31.30
UP
UP
24.00
23.20
31.90
33.00
Commercial Bank of Qatar (CBQK QD)
69.20
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.70
UP
UP
42.00
39.50
57.14
58.00
Qatar Islamic Bank (QIBK QD)
68.20
UP
DOWN
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)
66.00
UP
UP
58.50
57.00
66.30
67.15
National Leasing Holding Co. (NLCS QD)
30.75
DOWN
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
48.40
DOWN
DOWN
47.50
46.70
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
133.90
DOWN
FLAT
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)*
164.60
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)*
166.50
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
59.00
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
32.80
UP
UP
20.36
20.00
33.60
34.75
Barwa Real Estate Co. (BRES QD)
27.35
UP
UP
22.80
19.50
29.25
29.90
United Development Co. (UDCD QD)*
23.14
UP
UP
17.06
16.00
25.30
25.90
138.10
FLAT
DOWN
108.00
98.10
146.00
148.00
9.60
UP
UP
8.50
8.24
9.98
10.20
Nakilat (QGTS QD)
19.53
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)*
87.20
UP
UP
58.20
56.70
89.70
90.25
Banks and Financial Services
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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