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TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Uptrend
The QE Index snapped its seven-day winning streak and fell
marginally around 7 points (-0.05%). However, the index rebounded
from its intraday low of 12,825.37 as buyers pushed the price once
again above 12,950.0. This clearly indicates that buyers are willing to
accumulate at every possible dip. Meanwhile, the index may continue
to move higher until it stays above its intermediate support near the
12,940.0 level, where as a dip below this level may test 12,900.0.
Vodafone Qatar: Short-Term – Downmove
VFQS developed a bearish engulfing candle pattern on Wednesday
and moved lower on Thursday, thus confirming this reversal pattern.
Moreover, the stock dipped below its intermediate support of
QR17.99 indicating a further lower move. We believe the stock may
continue to drift down and test QR16.89 as it has little support until
then. However, a close above QR17.99 may attract buyers. The RSI
is moving lower indicating a likely correction.
Al Rayan Islamic Index: Short-Term – Neutral
The QERI Index continued to book profits for the second consecutive
session and declined marginally by -0.10% to close at 4,275.61. The
index momentarily dipped below the support near 4,248.0, but quickly
managed to recover majority of its losses as buyers stepped in and
offset the weakness. However, the index needs to move above the
4,302.0 level in order to gain further momentum, until then it is likely to
Gulf International Services: Short-Term – Upmove
GISS developed a hammer candle pattern on Wednesday indicating
the end of the current correction and gained 2.39% on Thursday, thus
confirming this bullish pattern. The stock is currently sitting exactly at
its immediate resistance of QR90.0. We believe if the stock manages
to move above this level it may spark additional buying interest, which
may push it further and test QR93.0. However, any failure to move
above QR90.0 may result in a pullback toward QR88.43.
Al Khalij Commercial Bank: Short-Term – Downmove
KCBK reversed on Wednesday and continued to drift lower on
Thursday, thus confirming its downmove. Moreover, the stock
penetrated below its supports of QR23.49 and QR23.23 in a single
swoop, which is a negative sign. With the RSI showing a bearish
divergence and the MACD closing the signal line from above, it
seems the stock may drift down further to test QR22.90. However, a
close above QR23.23 may halt its downmove.
Al Meera Consumer Goods Co.: Short-Term – Uptrend
MERS gained 4.36% and cleared the resistances of QR183.0 and
QR185.0 in a single trading session after consolidating below it over
the past few days, tagging an all-time high. This strong breach of
resistances has bullish implications and the stock may continue to
advance recording new highs. However, traders may need to keep a
close watch on the QR187.80 level for any reversal signs as a dip
below it may drag the stock to test QR185.0.
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
firstname.lastname@example.org email@example.com firstname.lastname@example.org 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
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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) 12,954.93 UP UP 12,892.76 12,800.00 13,000.00 13,100.00
Al Rayan Islamic Index (QERI Index) 4,275.61 UP UP 4,247.34 4,200.00 4,301.50 4,330.00
Banks and Financial Services Banks and
Masraf Al Rayan (MARK QD) 48.65 UP UP 48.50 47.00 51.80 53.00
Commercial Bank of Qatar (CBQK QD) 70.30 UP UP 69.80 68.40 72.67 73.42
Doha Bank (DHBK QD) 67.60 UP UP 67.10 65.70 68.00 69.50
Qatar Islamic Bank (QIBK QD) 88.50 UP UP 88.00 87.30 90.70 91.80
Qatar International Islamic Bank (QIIK QD) 85.80 UP UP 83.00 80.70 86.10 98.50
Qatar Insurance (QATI QD) 78.00 UP UP 77.00 76.00 80.00 81.90
Al Khalij Commercial Bank (KCBK QD)* 23.20 UP UP 22.90 22.49 23.23 23.49
Consumer Goods and Services Consumer G
Medicare Group (MCGS QD) 85.00 UP UP 83.40 81.70 87.80 90.00
Al Meera Consumer Goods Co. (MERS QD)* 188.90 UP UP 185.00 183.00 190.00 195.00
Industries Qatar (IQCD QD) 185.00 UP UP 183.00 181.40 186.40 188.50
Qatar Electricity & Water Co. (QEWS QD) 186.00 UP UP 184.00 180.00 188.00 190.00
Gulf International Services (GISS QD)* 90.00 UP UP 86.60 84.80 90.00 93.00
Qatari Investors Group (QIGD QD) 67.10 UP UP 64.70 61.30 68.40 71.70
Barwa Real Estate Co. (BRES QD) 38.80 UP UP 38.40 37.40 39.60 41.40
United Development Co. (UDCD QD) 24.40 UP UP 24.00 23.33 25.29 25.50
Ooredoo (ORDS QD) 148.00 UP UP 145.30 143.50 149.00 151.00
Vodafone Qatar (VFQS QD)* 17.96 UP UP 16.89 16.00 17.99 19.29
Nakilat (QGTS QD) 23.85 UP UP 23.70 22.80 24.00 24.50
Milaha (QNNS QD) 101.00 UP UP 100.10 98.30 102.50 104.90