1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Downmove
Al Rayan Islamic Index: Short-Term – Neutral
Commercial Bank of Qatar: Short-Term – Downmove
The QE Index continued its downfall and declined around 76 points (0.67%) to close the session at 11,170.25. Moreover, the index
penetrated below the important support of the ascending trendline
indicating that the recent uptrend may be running out of steam. We
believe the bears may continue to dominate the bulls until the index
trades below the ascending trendline and drag it lower to test
11,100.0. Meanwhile, the RSI has shown a bearish divergence.
The QERI Index reversed and moved higher around 0.07% to close
the session at 3,220.96. The support is seen near the 3,200.0 level
where the resistance exists at 3,240.37. We believe the index may
continue to oscillate between this range. Only a move above or below
these levels may decide the index’s next direction. Meanwhile, both
the momentum indicators are providing mixed signals, thus
supporting our neutral outlook for the index.
CBQK breached the support of QR71.80 and continued its decline on
the back of large volumes. Moreover, the stock has been
experiencing selling pressure over the past few days and is
underperforming. With the RSI moving down further from the mid-line
and the MACD diverging away from the signal line in a bearish
manner, CBQK’s preferred direction seems to be on the downside.
We believe the stock may drift lower and test the QR71.04 level.
Masraf Al Rayan: Short-Term – Downmove
United Development Co.: Short-Term – Downmove
Milaha: Short-Term – Downmove
MARK continued to move lower yesterday on the back of large
volumes. Moreover, MARK has been witnessing a steady decline
over the past few days since topping the rally at QR35.40 and is
moving along the descending trendline. We believe till the time the
stock trades below the resistance of this trendline, the upmove will be
in jeopardy and may continue to drift lower & test QR34.15.
Meanwhile, both the indicators are providing bearish signals.
UDCD penetrated below the supports of the 21-day moving average
and the 55-day moving average along with the long-term ascending
trendline. The stock is currently sitting right at its immediate support of
QR23.0. With the RSI moving down toward the mid-line and the
MACD growing more bearish, it seems UDCD may not hold onto its
support and decline further to test QR22.85. However, if the stock
manages to hold onto the QR23.0 level, it may halt its downmove.
QNNS witnessed a gap-up opening, but failed to make any further
headway and retreated. Moreover, the stock developed a bearish
Marubozu candle pattern indicating a likely continuation of this
downmove. We believe although the stock is trading close to its
immediate support of QR88.0, it may not cling onto it and decline
further to test its 55-day moving average. Both the indicators are in
downtrend mode indicating the continuation of this weakness.
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)
11,170.25
UP
UP
11,100.00
11,060.00
11,200.00
11,250.00
Al Rayan Islamic Index (QERI Index)
3,220.96
UP
UP
3,199.21
3,185.46
3,240.37
3,270.00
Masraf Al Rayan (MARK QD)*
34.35
UP
UP
34.15
33.50
35.00
36.00
Commercial Bank of Qatar (CBQK QD)*
71.50
DOWN
UP
70.90
70.20
71.80
72.80
Doha Bank (DHBK QD)
64.30
UP
UP
63.90
63.00
64.80
66.00
Qatar Islamic Bank (QIBK QD)
75.30
UP
UP
75.00
74.00
77.00
77.50
Qatar International Islamic Bank (QIIK QD)
69.00
UP
UP
68.00
67.00
69.40
70.30
Qatar Insurance (QATI QD)
76.40
UP
UP
76.20
75.40
78.00
80.00
National Leasing Holding Co. (NLCS QD)
30.30
DOWN
DOWN
29.95
29.15
30.60
31.00
Widam Food Co. (WDAM QD)
51.90
DOWN
FLAT
51.90
51.00
53.00
54.00
Al Meera Consumer Goods Co. (MERS)
143.10
UP
UP
142.70
140.50
144.00
145.90
Industries Qatar (IQCD QD)
181.20
UP
UP
180.00
178.30
181.50
183.00
Qatar Electricity & Water Co. (QEWS QD)
182.00
FLAT
UP
180.00
178.90
182.50
184.00
Gulf International Services (GISS QD)
78.00
UP
UP
77.00
76.00
79.00
80.00
Qatari Investors Group (QIGD QD)
47.90
DOWN
UP
47.70
46.00
49.09
52.40
Barwa Real Estate Co. (BRES QD)
31.45
UP
UP
31.20
30.85
31.60
32.00
United Development Co. (UDCD QD)*
23.00
DOWN
DOWN
23.00
22.85
23.15
23.50
Ooredoo (ORDS QD)
149.40
UP
UP
149.00
145.90
151.00
153.00
Vodafone Qatar (VFQS QD)
11.41
UP
UP
11.19
11.00
11.44
11.60
Nakilat (QGTS QD)
20.90
FLAT
UP
20.74
20.50
21.07
21.32
Milaha (QNNS QD)*
88.20
DOWN
FLAT
88.00
87.00
89.40
90.00
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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