Qatar stock exchange, Daily technical trader

1. Page 1 of 2
TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
The QE Index ended the session in the green for the third
consecutive session and gained around 137 points (1.03%). The
index remained in an upbeat mode and continued its bullish
momentum, surpassing the 13,350.0 and 13,450.0 levels. We believe
the index has been showing strength over the past few days and will
advance further toward 13,500.0-13,580.0 levels. Conversely, the
index could find support at 13,450.0 and 13,400.0.
Qatar International Islamic Bank: Short-Term – Upmove
QIIK built on its gains and breached the resistances of QR86.10 and
QR87.30, making further headway. The stock has been showing
strength since rebounding near QR81.00 and is moving up. We
believe based on the current higher push and a spike in volumes, the
stock may continue its advance and clear both the 55-day and 21-day
moving averages. However, traders may need to exercise caution, if
the stock slips below the QR87.30 level.
Al Rayan Islamic Index: Short-Term – Upmove
The QERI Index gained for the third straight day and rose around 42
points (0.93%) to settle above the 4,500.0 mark. Moreover, the index
ended in a bullish candlestick formation, suggesting the positive
momentum could continue. Any close above 4,529.0 would heighten
optimism among traders and the current rally may extend up to
4,600.0. On the flip side, 4,500.0 may provide psychological support.
Meanwhile, the RSI is moving up, showing signs of strength.
Qatar Electricity & Water Co.: Short-Term – Upmove
QEWS continued to move higher on Thursday and gained 1.27% to
surpass its resistance of QR190.00. The stock is currently at the
threshold of its next resistance of QR192.00. Any move above this
level may spark additional buying interest and push the stock further
up to test QR194.00. Meanwhile, both the momentum indicators are
providing bullish signals, indicating a continuation of this rise.
However, any failure to clear QR192.00 may pull the stock down.
Commercial Bank of Qatar: Short-Term – Upmove
CBQK gained 1.41% and surpassed the resistances of QR71.50 and
the 21-day moving average along with the descending trendline,
which had restricted its bullish move in the past. Notably, volumes
were also large on the rise, providing a positive signal. With the RSI in
the buy zone and the MACD showing signs of recovery, CBQK may
proceed further toward QR72.40. However, any retreat below the 21-
day moving average may result in a pullback.
Industries Qatar: Short-Term – Upmove
IQCD advanced further and cleared the resistances of QR188.50 and
QR190.00 in a single trading session. Moreover, the stock developed
a bullish Marubozu candlestick formation on daily charts, indicating a
likely continuation of this rally. We believe the stock has enough
steam to surpass QR191.50, targeting QR193.50. However, any
failure to move above QR191.50 may halt its upmove. Meanwhile, the
RSI has shown a bullish divergence, indicating a likely rally.

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 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) 13,465.69 DOWN DOWN 13,447.17 13,400.00 13,500.00 13,584.34 Al Rayan Islamic Index (QERI Index) 4,521.76 DOWN DOWN 4,500.00 4,444.86 4,528.58 4,600.00 Banks and Financial Services
Banks and Masraf Al Rayan (MARK QD)
53.00
DOWN
DOWN
52.80
51.80
53.40
54.10 Commercial Bank of Qatar (CBQK QD)* 71.80 UP UP 71.50 70.70 72.40 73.50
Doha Bank (DHBK QD)
58.40
FLAT
DOWN
58.00
57.00
59.20
60.00 Qatar Islamic Bank (QIBK QD) 114.50 UP FLAT 113.00 111.00 115.00 117.40
Qatar International Islamic Bank (QIIK QD)*
87.50
FLAT
FLAT
87.30
86.10
88.00
89.80 Qatar Insurance (QATI QD) 98.50 FLAT UP 97.00 94.60 99.00 100.00 Consumer Goods and Services
Consumer Goods Medicare Group (MCGS QD)
127.00
FLAT
DOWN
126.50
124.75
128.80
131.50 Industrials
Industrials
Industries Qatar (IQCD QD)*
191.50
UP
UP
190.00
188.50
191.50
193.50 Qatar Electricity & Water Co. (QEWS QD)* 191.90 UP UP 190.00 188.00 192.00 194.00
Gulf International Services (GISS QD)
120.50
UP
UP
119.50
118.10
121.00
122.50 Qatari Investors Group (QIGD QD) 50.10 DOWN DOWN 49.75 48.05 51.00 52.40 Real Estate
Real Estate
Barwa Real Estate Co. (BRES QD)
40.95
UP
UP
40.20
39.70
41.00
41.80 United Development Co. (UDCD QD) 28.10 DOWN DOWN 27.85 27.35 28.20 28.45
Ezdan Holding Group (ERES QD)
18.45
DOWN
DOWN
18.10
17.50
18.50
18.97 Mazaya Qatar Real Estate Development (MRDS QD) 23.14 DOWN DOWN 23.00 22.75 23.35 23.89 Telecom
Telecom
Ooredoo (ORDS QD)
127.00
DOWN
DOWN
126.00
124.90
128.00
129.70 Vodafone Qatar (VFQS QD) 20.50 DOWN DOWN 20.40 20.00 20.79 21.00 Transportation
Transportation
Nakilat (QGTS QD)
23.65
DOWN
DOWN
23.40
23.00
23.90
24.12 Milaha (QNNS QD) 96.00 FLAT UP 95.10 94.50 96.50 97.80