Qatar stock exchange

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Daily Technical Trader – Qatar
Sunday, 07 December 2014
Stocks Covered Today Ticker Price Direction Tgt.
IQCD
183.90
Flat
186.00
GWCS
59.40
Flat
62.20
QSE Index Price % Ch. Vol. (mn)
Last
12,748.18
1.1
8.7
Resistance/Support (Daily) Levels 1st 2nd 3rd
Resistance
12,900
13,000
13, 230
Support
12,450
12,000
11,400
QSE Index Commentary
Overview:
The QSE Index rebounded on Thursday. However, for the week it still fell by 4.4%. Although not much has changed since last week in terms of the bearishness of the trend; the bounce may continue and possibly will penetrate back above the uptrend line that has been breached. There are two positive signs supporting the bounce stemming from the daily frame. 1) MACD’s Histogram losing momentum to the downward pressure and 2) RSI is trying to liftoff from the oversold area for the second time.
Expected Target : 13,000
The level will be in possible reach only if the Index breaches the 12,900 and above.
Suggested Stop-Loss: 12,450
QSE Index (Daily)
Source: Bloomberg, QNBFS Research
QE Summary Market Indicators 04 Dec 14 03 Dec 14 %Ch.
Value Traded (QR mn)
565.6
682.9
-17.2
Ex. Mkt. Cap. (QR bn)
696.9
690.7
0.9
Volume (mn)
9.6
10.5
-8.6
Number of Trans.
5,746
6,698
-14.2
Companies Traded
41
40
2.5
Market Breadth
31:6
11:24
–
QE Indices Market Indices Close 1D% RSI
Total Return
19,013.79
1.1
32.5
All Share Index
3,254.65
0.9
33.4
Banks
3,239.60
0.8
34.1
Industrials
4,232.66
1.4
32.8
Transportation
2,322.50
0.9
40.2
Real Estate
2,526.40
0.6
32.4
Insurance
3,787.11
-0.1
30.9
Telecoms
1,437.67
1.5
38.9
Consumer
7,303.07
0.9
42.7
Al Rayan Islamic
4,331.49
1.2
36.1
RSI 14 (Over Bought) Ticker Close 1D% RSI
IHGS
219.70
1.7
82.4
RSI 14 (Over Sold) Ticker Close 1D% RSI
NLCS
22.05
0.7
21.7
QIGD
42.95
0.2
26.5
ERES
17.19
0.6
28.6
MPHC
30.55
0.8
29.2
SIIS
16.30
0.0
29.2
QSE Index (30Min)
Source: Bloomberg, QNBFS Research

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IQCD Price % Ch. Volume
Last
183.90
1.04
119,978
Resistance/Support Levels (QR) 1st 2nd 3rd
Resistance
184.00
186.00
188.00
Support
180.00
177.00
175.00
Commentary
Overview:
The Industrials leader bounced off a strong support at the QR177.00 level. A possible continuation on the bounce is in place. The MACD on the daily basis is still below the zero line. On the other hand, the Histogram is showing weakness and the RSI broke above the downtrend. Long shadows in the previous sessions’ candles shows indecision with the seller and may indicate more buyers coming in the stock. At this point, the bounce should be considered what it is, just a bounce. As a result, we should treat this price action for a quick trade until more evidence of continuation comes into play.
Expected Price Target: QR186.00 – QR188.00
The trigger for the long trade is a break above the QR184.00.
Suggested Stop-Loss Price: QR180.00
The quick trade should be closely monitored with the name staying above the suggested level. A break below the stop-loss point could drag the name further to the QR175.00 level.
(Daily)
Source: Bloomberg, QNBFS Research (Hourly)
Source: Bloomberg, QNBFS Research

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GWCS Price % Ch. Volume
Last
59.40
2.41
310,416
Resistance/Support Levels (QR) 1st 2nd 3rd
Resistance
60.70
62.20
64.20
Support
58.70
57.00
53.90
Commentary
Overview:
GWCS is in a bouncing mode at this point, signs of continuation are being established. The MACD on the daily chart is showing bullish momentum. The RSI penetrated a downtrend on the oscillator and is moving up. Any retreat to the QR57.00 level can be used for accumulation. The reason for such minor retreat is that the MACD on the hourly basis is still under the zero line, thus indicating a possible pullback.
Expected Price Target: QR62.20 – QR64.20
The typical trigger for the name should be a break above the QR60.70. Due to the possible retreat, more positions can be built as long as the name stays above the suggested stop-loss.
Suggested Stop-Loss: QR57.00
A break below will indicate weakness on the overall price movement.
(Daily)
Source: Bloomberg, QNBFS Research (Hourly)
Source: Bloomberg, QNBFS Research

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Intra-day Fibonacci Support and Resistance Levels Daily Moving Averages* Support Levels Resistance Levels Ticker Close 3rd 2nd 1st Pivot 1st 2nd 3rd 50 SMA 100 SMA 200 SMA
QSE Index
12,748.18
12,533.71
12,599.73
12,640.52 12,706.54
12,772.56
12,813.35
12,879.37
13,544.05
13,502.74
12,926.71
Total Return
19,013.79
18,693.92
18,792.38
18,853.22 18,951.69
19,050.15
19,110.99
19,209.46
20,200.82
20,139.21
19,222.69
All Share
3,254.65
3,208.15
3,222.17
3,230.83 3,244.85
3,258.87
3,267.53
3,281.55
3,429.42
3,415.81
3,277.89
Al Rayan Islamic
4,331.49
4,247.73
4,272.51
4,287.82 4,312.60
4,337.38
4,352.69
4,377.47
4,562.84
4,570.21
4,261.50 Banks & Financials Services
MARK
46.20
44.60
45.13
45.47 46.00
46.53
46.87
47.40
51.55
53.39
50.06
CBQK
71.00
70.20
70.58
70.82 71.20
71.58
71.82
72.20
72.57
71.04
68.42
DHBK
57.20
56.07
56.53
56.81 57.27
57.73
58.01
58.47
58.78
59.30
60.60
QIBK
102.30
99.83
100.64
101.13 101.93
102.74
103.23
104.03
110.66
111.27
98.40
QIIK
83.90
79.03
80.60
81.57 83.13
84.70
85.67
87.23
86.50
86.87
83.46 Insurance
QATI
88.00
86.00
87.15
87.85 89.00
90.15
90.85
92.00
96.55
95.32
84.08 Consumer Goods & Services
MCGS
124.90
123.03
123.57
123.90 124.43
124.97
125.30
125.83
127.82
123.14
100.45 Industrials
IQCD
183.90
176.10
178.35
179.75 182.00
184.25
185.65
187.90
190.51
186.94
185.35
QEWS
190.50
186.83
188.21
189.06 190.43
191.81
192.66
194.03
188.55
187.57
184.22
GISS
100.50
92.90
95.15
96.55 98.80
101.05
102.45
104.70
118.70
117.98
102.26
QIGD
42.95
41.88
42.19
42.38 42.68
42.99
43.18
43.48
50.56
54.03
55.99 Real Estate
BRES
45.80
44.27
44.92
45.32 45.97
46.62
47.02
47.67
44.57
42.94
40.13
UDCD
25.35
24.78
24.97
25.09 25.28
25.47
25.59
25.78
27.28
27.96
25.71
ERES
17.19
16.93
17.01
17.05 17.13
17.21
17.25
17.33
19.12
19.84
21.49
MRDS
21.65
20.54
20.87
21.07 21.40
21.73
21.93
22.26
23.26
22.71
19.89 Telecommunication
ORDS
117.50
116.10
116.90
117.40 118.20
119.00
119.50
120.30
124.73
127.18
135.54
VFQS
17.02
16.24
16.53
16.70 16.99
17.28
17.45
17.74
19.78
20.15
18.11 Transportation
QGTS
23.15
22.75
22.89
22.98 23.12
23.26
23.35
23.49
24.08
24.13
23.30
QNNS
98.30
95.57
96.37
96.86 97.67
98.47
98.96
99.77
98.40
96.70
95.52
Source: 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
Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian
Head of Research Senior Research Analyst Senior Research Analyst
Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509
saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa
Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC
Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666
Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025
sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar
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