1. Page 1 of 2
TECHNICAL ANALYSIS: QSE INDEX AND KEY STOCKS TO CONSIDER
QSE Index: Short-Term – Neutral
The QSE Index snapped its three-day winning streak and shed
around 33 points (-0.24%) on the back of profit-booking. The index
witnessed a gap-down opening and remained lackluster. However it
recovered from the intraday low of 13,704.93, trimming majority of its
losses. We maintain our positive bias on the index, as long as it stays
above the 55-day moving average and 13,700.0. Conversely, a
retreat below these levels may result in a pullback.
Qatar Insurance: Short-Term – Pullback
QATI has been struggling to move above the descending trendline,
despite multiple attempts in the past. Moreover, the stock breached
the important support of QR97.0 after defending it successfully, which
is a bearish signal. Further, both the momentum indicators are in a
downtrend mode, showing no immediate trend reversal signs.
Traders may consider selling the stock at the current level for a target
of QR95.30, followed by QR94.60 with a stop loss of QR97.0.
Al Rayan Islamic Index: Short-Term – Upmove
The QERI Index extended its gains for the fourth straight session and
rose around 35 points (0.76%) to conclude the day at 4,630.49. We
believe, based on the current bullish momentum and positive
indicators, the index will surpass the resistance of 4,639.0, which is
also in proximity to the 55-day moving average and advance further
toward 4,673.0. On the flip side, a failure to move above 4,639.0 and
the 55-day moving average may lead to profit-booking.
Barwa Real Estate Co.: Short-Term – Upswing
After taking a breather for a day, BRES resumed its upswing and
jumped 4.49% to tag a fresh 52-week high. The stock cleared its
resistance of QR48.88 on the back of large volumes, indicating
strength in the current upswing. With both the momentum indicators
positively poised, BRES’s preferred direction seems to be on the
upside. We believe the stock may continue its rally and test QR51.20.
However, any retreat below QR48.90 may halt its upswing.
Industries Qatar: Short-Term – Upmove
IQCD gained 0.51% and made further headway yesterday. The stock
has been moving along the ascending channel over the past few days
and is in an upmove mode. IQCD is currently sitting exactly on its
resistance of QR198.0. Any move above this level will play a major
role in the stock’s near-term direction and push it toward QR200.0.
However, the stock may consolidate if it fails to move above
QR198.0. Meanwhile, both the indicators are looking strong.
Ooredoo: Short-Term – Pullback
ORDS failed to capitalize on the rebound on Monday and declined
further, penetrating below the supports of QR121.40 and QR120.50 in
a single swoop. Moreover, the stock developed a red Marubozu
candlestick formation, indicating a likely continuation of this pullback
toward QR118.80. Further, the negative slope on the RSI is
supporting this bearish sentiment. Conversely, the stock may get
some relief if it manages to climb above the QR120.50 level.

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
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa 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 Stock 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 QSE 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 Stock Exchange Index (QSE Index) 13,755.74 UP FLAT 13,753.36 13,700.00 13,847.11 13,909.87 Al Rayan Islamic Index (QERI Index) 4,630.49 UP FLAT 4,584.50 4,550.00 4,638.81 4,672.95 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
50.20
DOWN
DOWN
49.60
48.50
50.40
51.80 Commercial Bank of Qatar (CBQK QD) 73.70 UP UP 73.40 72.50 74.30 75.00
Doha Bank (DHBK QD)
59.00
UP
DOWN
58.70
58.00
59.20
59.90 Qatar Islamic Bank (QIBK QD) 109.90 DOWN DOWN 109.00 107.00 110.00 111.00
Qatar International Islamic Bank (QIIK QD)
85.00
DOWN
DOWN
84.90
84.00
86.10
87.30 Qatar Insurance (QATI QD)* 96.10 DOWN DOWN 95.30 94.60 97.00 98.00 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
125.00
DOWN
DOWN
124.75
121.50
126.50
128.80 Industrials
Industrials
Industries Qatar (IQCD QD)*
198.00
UP
UP
196.50
194.60
198.00
200.00 Qatar Electricity & Water Co. (QEWS QD) 188.60 UP UP 188.00 186.00 190.00 192.00
Gulf International Services (GISS QD)
127.00
UP
UP
127.00
125.50
128.30
129.80 Qatari Investors Group (QIGD QD) 48.90 DOWN DOWN 47.70 46.90 48.90 49.75 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)*
50.00
UP
UP
48.88
47.30
51.25
52.30 United Development Co. (UDCD QD) 26.40 DOWN DOWN 26.10 25.70 26.50 27.00
Ezdan Holding Group (ERES QD)
19.05
DOWN
DOWN
18.97
18.55
19.36
19.50 Mazaya Qatar Real Estate Development (MRDS QD) 24.15 UP DOWN 23.89 23.35 24.25 25.00 Telecom
Telecom
Ooredoo (ORDS QD)*
120.10
DOWN
DOWN
118.80
117.70
120.50
121.40 Vodafone Qatar (VFQS QD) 19.35 DOWN DOWN 19.29 18.75 19.72 20.00 Transportation
Transportation
Nakilat (QGTS QD)
24.55
UP
UP
24.45
24.12
24.61
25.00 Milaha (QNNS QD) 103.50 UP UP 102.00 101.10 104.00 105.80