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QE Index: Short-Term – Uptrend 
The QE Index showcas...
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC...
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26 August Daily technical trader


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26 August Daily technical trader

  1. 1. Page 1 of 2 TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER QE Index: Short-Term – Uptrend The QE Index showcased a robust performance and gained around 112 points (0.82%), recording an all-time high of 13,928.54. However it later trimmed its gains. The index remained in a bullish mode as sustained buying interest pushed the index above the 13,850.0 level. Meanwhile, the strength in the momentum indicators suggests that the index may continue its positive momentum and proceed further. On the flip side, 13,850.0 may act as an intermediate support. Industries Qatar: Short-Term – Upmove IQCD continued its upmove and surpassed the resistance of QR190.0 with increased participation. Moreover, the stock has been moving along the ascending channel over the past few days and is gaining momentum. Meanwhile, IQCD is currently sitting exactly on its key resistance of QR191.0. Any move above this level may trigger fresh buying and push the stock further to test QR193.50. However, any failure to move above QR191.0 may result in consolidation. Al Rayan Islamic Index: Short-Term – Uptrend The QERI Index after taking a breather scaled to yet another new peak to record an all-time high. The index has shown a steep ascent since July and is currently experiencing a bull-run. Further, the RSI is moving strongly into the overbought territory, while the MACD is diverging away from the signal line on the upside, indicating strength. We believe the index may continue its bullish momentum and record new highs. Conversely, 4,800.0 may act as a psychological support. United Development Co.: Short-Term – Bounce Back UDCD found support at its 21-day moving average and rebounded, breaching its resistance of QR29.85. Moreover, the stock developed a bullish engulfing candlestick formation, which usually indicates a positive signal. We believe based on the recent price action and spike in volumes, the stock may continue to move ahead and test QR30.45. However, any retreat below QR29.85 may result in a pullback. Meanwhile, the RSI is moving up in a bullish manner. Commercial Bank of Qatar: Short-Term – Bounce Back CBQK cleared the resistances of the ascending pennant and QR68.30, after feigning a failure in the past few attempts, which is a positive sign. Moreover, the stock created a sizable bullish candlestick formation on the daily chart, indicating a likely continuation of this upmove. Further, the RSI in the buy zone supports this bullish sentiment. Traders could consider buying the stock at the current level for a target of QR69.50 with a stop loss of QR68.30. Qatar International Islamic Bank: Short-Term – Upmove QIIK continued its bullish momentum and jumped 3.72%, tagging a 52-week high. Moreover, the stock surpassed the resistances of QR89.0 and QR90.50 in a single swoop. Notably, volumes were also large on the rise, reflecting optimism among traders. Further, both the momentum indicators are providing bullish signals. We believe the stock may continue its advance and test QR93.50, followed by QR95.80. However, a decline below QR90.50 may halt its upmove.
  2. 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 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. 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 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) 13,865.89 UP UP 13,847.11 13,800.00 13,928.54 14,000.00 Al Rayan Islamic Index (QERI Index) 4,812.73 UP UP 4,800.00 4,770.31 4,830.58 4,870.00 Banks and Financial Services Banks and Masraf Al Rayan (MARK QD) 57.50 UP UP 57.30 55.80 59.90 61.30 Commercial Bank of Qatar (CBQK QD)* 68.70 UP UP 68.30 67.50 69.50 70.00 Doha Bank (DHBK QD) 61.40 UP UP 61.00 60.00 62.00 63.10 Qatar Islamic Bank (QIBK QD) 123.00 UP UP 121.50 119.50 123.80 125.00 Qatar International Islamic Bank (QIIK QD)* 92.00 UP UP 90.50 89.00 93.50 95.80 Qatar Insurance (QATI QD) 98.50 UP UP 97.00 96.00 99.00 100.00 Al Khalij Commercial Bank (KCBK QD) 22.14 FLAT FLAT 22.00 21.80 22.35 22.50 Consumer Goods and Services Consumer Goods Medicare Group (MCGS QD) 135.90 UP UP 135.20 132.00 139.40 141.00 Al Meera Consumer Goods Co. (MERS QD) 188.60 DOWN UP 187.80 185.00 190.00 191.50 Industrials Industrials Industries Qatar (IQCD QD)* 191.00 UP UP 190.00 188.50 191.00 193.50 Qatar Electricity & Water Co. (QEWS QD) 187.00 UP UP 186.00 184.00 188.00 190.00 Gulf International Services (GISS QD) 121.50 UP UP 121.00 118.10 122.50 124.10 Qatari Investors Group (QIGD QD) 59.60 UP UP 57.70 56.20 59.70 60.60 Real Estate Real Estate Barwa Real Estate Co. (BRES QD) 41.50 UP UP 41.00 40.20 41.80 42.50 United Development Co. (UDCD QD)* 30.05 UP UP 29.85 29.50 30.45 30.61 Telecom Telecom Ooredoo (ORDS QD) 123.20 DOWN DOWN 122.90 121.50 123.70 124.90 Vodafone Qatar (VFQS QD) 21.60 UP UP 21.40 21.00 21.99 22.30 Transportation Transportation Nakilat (QGTS QD) 24.40 DOWN UP 24.12 23.90 24.45 25.00 Milaha (QNNS QD) 95.00 UP UP 93.00 91.30 95.10 96.50