1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Masraf Al Rayan: Short-Term – Bounce Back
The QE index rose around 0.21% to close the session at 10,375.06.
After moving above 10,300 on Wednesday, the index continued its
upward momentum and breached its resistance of 10,360,
suggesting that the index may have further strength. We believe if the
index holds above the 10.360 level, it may move higher toward
10,400. However, a decline below 10,360 may attract sellers.
Meanwhile, has been making lower highs, indicating weakness.
The QERI Index was flat on Thursday, as it closed at 3,031.88,
marginally below the 3,036 resistance level. The index momentarily
moved above this level, but was unable to close above it. We believe
if the index manages to move above 3,036, it may test the 3,050
level. On the flip side, a move below the 3,000 level could take the
index to 2,985. Meanwhile, The MACD has converged with the signal
line, indicating that the index may see some selling pressure.
MARK breached the QR32.60 level and rose by 0.92%, tagging a
new 52-week high, to close at QR33.00. The stock jumped on good
volumes, indicating strong buying interest. MARK made an intra-day
high of QR33.50, but gave up some gains in the latter part of trading
session. If the stock is able to hold above the QR32.60 level, it may
test the QR33.50 level again. On the flip side, if MARK moves below
QR32.60, it may test its support of QR32.00.
Qatar Insurance: Short-Term – Bounce Back
Doha Bank: Short-Term – Pull Back
Commercial Bank of Qatar: Short-Term – Bounce Back
QATI after repeated attempts to move above QR65.90 finally
penetrated this level and closed the session at its immediate
resistance level of QR66.50. The stock developed a bullish Marubozu
candle supported by increasing volume, indicating a positive outlook.
We believe if QATI holds at the QR66.50 level it may move toward
QR66.80 or else it may drift down to retest QR65.90.
DHBK developed a bearish Marubozu candle and declined 0.36% to
close at QR55.80. The stock is currently at its immediate support line
and we believe if it fails to hold this level, it may drift lower toward the
QR55.20. Meanwhile, the RSI line is trending lower, while the MACD
line is diverging from the signal line in a bearish manner, supporting a
negative outlook for the stock. On the flip side, if the stock moves
above QR56.26, it may attract buyers.
CBQK witnessed a gap up opening, as it cleared the resistance level
of QR68.60 supported by higher volumes. However, the stock
respected the resistance at QR69.60 and pulled back as buyers
stayed away from higher prices. If this level is breached, the stock
may test QR70.00, or else it may test the support provided by its 21day moving average (currently at QR68.37). Meanwhile, the RSI is
moving higher, indicating strength in the stock.
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)
10,375.06
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,031.88
UP
UP
2,900.00
2,800.00
3050.00
3,125.00
Masraf Al Rayan (MARK QD)*
33.00
UP
UP
24.00
23.20
33.65
34.69
Commercial Bank of Qatar (CBQK QD)*
68.80
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)*
55.80
DOWN
UP
42.00
39.50
58.15
59.20
Qatar Islamic Bank (QIBK QD)
69.80
UP
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD
60.10
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)*
66.50
UP
UP
58.50
57.00
67.15
69.10
National Leasing Holding Co. (NLCS QD)
31.30
UP
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
48.80
UP
DOWN
47.00
46.25
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.00
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
168.20
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
168.80
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.60
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
39.65
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)
30.15
UP
UP
22.80
19.50
30.50
30.85
United Development Co. (UDCD QD)
23.38
UP
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)
136.40
DOWN
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)
11.10
UP
UP
8.50
8.24
11.15
11.75
Nakilat (QGTS QD)
20.85
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
89.50
UP
UP
58.20
56.70
90.25
95.50
Banks and Financial Services
Banks and
Consumer Goods and Services
Consumer G
Industrials
Industrials
Real Estate
Real Estate
Telecom
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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