The QSE Index rallied another day and reached the top side of the uptrend channel in the short term

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Daily Technical Trader – Qatar
Monday, 01 February 2016
Stocks Covered Today
Ticker Price 1
st
Target
CBQK 41.20 42.00
MCGS 87.80 90.40
QSE Index
Level % Ch. Vol. (mn)
Last 9,481.30 2.26 8.5
Resistance/Support
Levels 1
st
2
nd
3
rd
Resistance 9,600 9,800 10,000
Support 9,400 9,150 9,000
QSE Index Commentary
Overview:
The QSE Index rallied another day and
reached the top side of the uptrend
channel in the short term. In addition, it is
coming closer to the trough that was
established last December. That means,
even though the momentum is positive,
we might expect profit taking at any
moment.
Expected Resistance Level: 9,600
Expected Support Level: 9,400
QSE Index (Daily)
Source: Bloomberg, QNBFS Research
QE Summary
Market Indicators 31 Jan 28 Jan %Ch.
Value Traded (QR mn) 316.2 396.8 -20.3
Ex. Mkt. Cap. (QR bn) 507.1 495.3 2.4
Volume (mn) 11.4 12.1 -5.8
Number of Trans. 5,138 5,260 -2.3
Companies Traded 40 41 -2.4
Market Breadth 34:5 28:10 –
QE Indices
Market Indices Close 1D% RSI
Total Return 14,737.32 2.3 51.5
All Share Index 2,519.72 2.5 51.2
Banks 2,545.74 1.0 50.7
Industrials 2,847.73 2.6 51.1
Transportation 2,205.10 3.1 47.2
Real Estate 2,053.99 5.7 49.8
Insurance 4,058.22 0.6 58.2
Telecoms 984.62 1.2 57.8
Consumer 5,248.63 6.0 49.4
Al Rayan Islamic 3,371.86 3.3 48.4
RSI 14 (Over Bought)
Ticker Close 1D% RSI
RSI 14 (Over Sold)
Ticker Close 1D% RSI
DBIS 12.85 -1.2 21.5
QCFS 28.15 -0.5 27.6
QSE Index (30min)
Source: Bloomberg, QNBFS Research

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CBQK
Price % Ch. Volume
Last 41.20 3.78 373,198
Resistance/Support
Levels (QR) 1
st
2
nd
3
rd
Resistance 41.20 42.00 43.00
Support 40.00 38.00 36.90
Commentary
Overview:
The bank struggled to stay above the
QR36.90 level but then succeeded in
climbing above the QR40.00 level. This
move indicates a possible change in
market psychology to the positive side.
The positive failure swings in price (seen
on the intraday chart) supports the above
bullishness.
Expected Target Price: QR42.00 –
QR43.00
A price breakaway above QR41.20
triggers the buy recommendation.
Suggested Stop-Loss Price: QR38.00
(Daily)
Source: Bloomberg, QNBFS Research
(Hourly)
Source: Bloomberg, QNBFS Research

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MCGS
Price % Ch. Volume
Last 87.80 9.89 61,824
Resistance/Support
Levels (QR) 1
st
2
nd
3
rd
Resistance 87.80 90.40 94.20
Support 82.90 80.00 73.40
Commentary
Overview:
The name displayed multiple bullish signs.
The price created three bottoms; that can
be seen on the intraday chart. We noticed
positive divergence between the RSI and
the price while positive momentum is
picking up.
Expected Target Price: QR90.40 –
QR94.20
A price breakaway above QR87.80
triggers the buy recommendation.
Suggested Stop-Loss Price: QR80.00
(Daily)
Source: Bloomberg, QNBFS Research
(Hourly)
Source: Bloomberg, QNBFS Research

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Intraday Fibonacci Support and Resistance Levels Daily Moving Averages
Support Levels Resistance Levels
Ticker Close 3
rd
2
nd
1
st
Pivot 1
st
2
nd
3
rd
50 SMA 100 SMA 200 SMA
QSE Index 9,481.30 9,337.58 9,379.37 9,405.20 9,446.99 9,488.78 9,514.61 9,556.40 9,861.48 10,665.33 11,297.46
Total Return 14,737.32 14,513.92 14,578.89 14,619.02 14,683.99 14,748.96 14,789.09 14,854.06 15,328.26 16,577.73 17,559.23
All Share 2,519.72 2,473.69 2,486.88 2,495.03 2,508.21 2,521.40 2,529.55 2,542.73 2,628.29 2,839.64 3,013.62
Al Rayan Islamic 3,371.86 3,279.83 3,306.20 3,322.49 3,348.85 3,375.22 3,391.51 3,417.87 3,623.20 3,983.67 4,290.29
Banks & Financials Services
MARK 34.00 33.53 33.76 33.90 34.13 34.36 34.50 34.73 35.45 39.07 42.36
CBQK 41.20 39.60 40.06 40.34 40.80 41.26 41.54 42.00 43.92 49.16 52.49
DHBK 36.30 35.43 35.89 36.17 36.63 37.09 37.37 37.83 42.20 45.89 49.60
QIBK 88.00 85.60 86.29 86.71 87.40 88.09 88.51 89.20 102.61 109.88 108.38
QIIK 65.30 63.97 64.54 64.89 65.47 66.04 66.39 66.97 63.64 69.19 74.00
Insurance
QATI 83.00 82.33 82.72 82.95 83.33 83.72 83.95 84.33 81.38 87.47 90.85
Consumer Goods & Services
MCGS 87.80 80.07 82.28 83.65 85.87 88.08 89.45 91.67 111.98 137.38 156.74
Industrials
IQCD 104.80 101.87 102.86 103.47 104.47 105.46 106.07 107.07 102.55 112.45 125.13
QEWS 187.00 182.33 184.24 185.42 187.33 189.24 190.42 192.33 202.53 207.27 211.46
GISS 42.90 41.83 42.44 42.82 43.43 44.04 44.42 45.03 48.02 55.49 65.81
QIGD 28.40 27.33 27.85 28.17 28.68 29.20 29.52 30.03 34.46 39.97 45.26
Real Estate
BRES 32.80 32.37 32.61 32.77 33.02 33.26 33.42 33.67 37.58 40.69 45.08
UDCD 18.45 17.56 17.90 18.11 18.45 18.79 19.00 19.34 19.87 21.83 22.86
ERES 14.41 13.14 13.52 13.76 14.13 14.51 14.75 15.12 15.08 16.95 17.42
MRDS 11.59 11.33 11.43 11.48 11.58 11.68 11.73 11.83 13.59 14.89 16.58
Telecommunication
ORDS 79.30 77.23 78.15 78.72 79.63 80.55 81.12 82.03 72.45 73.92 80.41
VFQS 10.64 10.33 10.45 10.52 10.64 10.76 10.83 10.95 11.53 12.72 14.46
Transportation
QGTS 20.95 20.15 20.44 20.61 20.90 21.19 21.36 21.65 22.46 23.07 22.66
QNNS 89.40 84.87 86.17 86.97 88.27 89.57 90.37 91.67 93.06 95.51 96.72
Sources: Bloomberg, QNBFS Research; Note: Numbers in Italics denote moving averages that are above the given index level/stock price

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Definitions:
Candlestick: A chart that displays the high, low, opening and closing prices for a security in a single period. The body of the candle is made up by the opening
and the closing prices, i.e., the taller the body the greater the range between these two prices and vice versa. A colored candle denotes a closing price that is
lower than the opening price, while a white candle shows the opposite. The candlestick's shadows or wicks show the period's high and low prices and how they
compare to the opening and closing price. In general, the shape of the candle will vary upon the positions of the period's high, low, opening and closing prices.
Support: A level that could cause more buyers to step in in order to prevent the security from falling or causing the security price to head higher.
Resistance: An inverse of a support level. A resistance area or level could cause more sellers to step in in order to prevent the security from rising or causing the
security price to head lower.
SMA (Simple Moving Average): Is an arithmetic average, which calculates the average price of a security over a defined number of periods and is thus
considered a lagging indicator. SMAs used in our analysis refer to closing prices. In general, SMAs serve many purposes, such as a smoothing tool, an indicative
price direction and potential support/resistance levels.
Market Breadth: Breadth indicates the number of securities that have closed higher vs. the number of decliners in a particular exchange.
MACD (Moving Average Convergence/Divergence): Is a trading indicator, which shows changes in the strength, direction, momentum and duration of a trend in
a stock's price through a collection of three time series calculated from historical closing price data.
RSI (Relative Strength Index): Is a momentum indicator that compares a security’s price gains to its losses for a predetermined number of periods (we generally
use 14 periods). The RSI attempts to point out how a security, in relative terms, is in the overbought/oversold zone. Securities with a RSI above 70 could be
considered as overbought, and below 30 could be considered as oversold.
Pattern/Formation: Is a graphical presentation of a security’s price activity over a certain period of time. Formations come in different shapes (such as, head &
shoulders, triangles, flags, and so on). They can be used to identify potential trends, reversal of trends, price targets, entry and exit points, etc.
Fibonacci Retracements: Are horizontal lines that indicate expected areas of support/resistance for a security based on a predetermined price movement. These
levels are usually indicated by Fibonacci ratios of 23.6%, 38.2%, 50.0%, 61.8% and 100% from that particular movement.
Fibonacci Pivot and Intra-day Support/Resistance: A Pivot Point is generally used to formulate expected future support/resistance levels. From the base Pivot
Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.

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Contacts:
Zaid al-Nafoosi, CMT, CFTe Saugata Sarkar Shahan Keushgerian
Senior Research Analyst Head of Research Senior Research Analyst
Tel: (+974) 4476 6535 Tel: (+974) 4476 6534 Tel: (+974) 4476 6535
zaid.alnafoosi@qnbfs.com.qa saugata.sarkar@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
QNB Financial Services SPC
Contact Center: (+974) 4476 6666
PO Box 24025
Doha, Qatar
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