The document provides a technical analysis of the QE Index, Al Rayan Islamic Index, and key Qatari stocks. It analyzes the short-term and long-term trends, and identifies stocks that are poised for an upmove or downmove. The QE Index is seen moving higher toward 11,200-11,250 levels. The Al Rayan Islamic Index is also expected to rise further toward 3,240.37. Masraf Al Rayan and Qatar Islamic Bank are identified as stocks poised to breakout to new highs, while Widam Food Co. and Industries Qatar are expected to breakdown further. Support and resistance levels are also provided for analyzing entry and exit points.

1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Upmove
Al Rayan Islamic Index: Short-Term – Upmove
Masraf Al Rayan: Short-Term – Breakout
The QE Index continued its upmove and moved higher around 58
points (0.52%) to close just below the 11,200.0 level. Moreover, the
index managed to cling onto the 21-day moving average and
breached the important resistance of 11,171.33, which is a positive
sign. The recent price action and pick-up in volumes indicate that the
index may proceed toward the 11,200.0-11,250.0 levels. However, a
retreat below 11,171.33 may indicate a pullback toward 11,150.0.
The QERI Index moved higher for the second consecutive day and
breached the resistance of the 21-day moving average. We believe
there is a possibility of a continued rise as well as a further rally
toward 3,240.37 if the index manages to hold onto the 21-day moving
average. Conversely, a dip below the 21-day moving average may
drag the index to test its support near 3,200.0. Meanwhile, the RSI
has rejected the mid-line and is moving higher.
MARK moved higher and surpassed its previous best of QR35.40,
tagging a new-all time high. We believe based on the momentum of
the current higher move, MARK seems poised to tag new highs.
Moreover, the RSI is moving strongly in the overbought territory, while
the MACD has crossed the signal line into the positive territory
indicating a further advance. However, a dip below QR35.40 may
signal some consolidation before its next upmove.
Qatar Islamic Bank: Short-Term – Breakout
Widam Food Co.: Short-Term – Breakdown
Industries Qatar: Short-Term – Breakdown
QIBK witnessed a gap-up opening and cleared the resistance of
QR76.0 tagging a 52-week high. However, the gains were limited as
the stock could not manage to breach the immediate resistance of
QR77.0 and closed exactly at the same level. We believe the pick-up
in buying interest indicate that QIBK may push prices higher.
Moreover, the RSI and the MACD lines are providing bullish signals.
However, any failure to clear QR77.0 may pull the stock down.
WDAM continued its downmove and dipped below the support of
QR48.10. Moreover, the stock has been experiencing sustained
selling pressure over the past few weeks and is moving down along
the resistance of the descending trendline. In addition, the recent
spike in volumes is indicating further weakness in the stock. With both
the indicators pointing downward the stock may head lower and test
QR47.15. However, a close above QR48.10 may provide some relief.
IQCD penetrated below the support of QR174.60 on the back of large
volumes on Thursday. Moreover, the stock is moving down along the
descending trendline over the past few days and has been
underperforming. We believe although the stock is sitting right at its
immediate support of QR173.0, it seems unlikely that IQCD may hold
onto it and may decline further to test its 55-day moving average.
However, if the stock manages to hold onto QR173.0 it may advance.
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)
11,192.21
UP
UP
11,171.33
11,100.00
11,250.00
11,300.00
Al Rayan Islamic Index (QERI Index)
3,221.76
UP
UP
3,199.21
3,150.00
3,240.37
3,270.00
Masraf Al Rayan (MARK QD)*
36.35
UP
UP
35.40
34.15
37.00
38.00
Commercial Bank of Qatar (CBQK QD)
72.80
FLAT
UP
71.80
70.90
73.30
74.00
Doha Bank (DHBK QD)
64.70
UP
UP
64.00
63.30
65.70
66.00
Qatar Islamic Bank (QIBK QD)*
77.00
UP
UP
76.00
75.00
77.50
78.00
Qatar International Islamic Bank (QIIK QD)
70.10
UP
UP
69.40
68.00
70.50
71.20
Qatar Insurance (QATI QD)
81.40
UP
UP
81.00
80.00
84.60
86.90
National Leasing Holding Co. (NLCS QD)
30.55
FLAT
DOWN
29.95
29.15
31.00
31.45
Widam Food Co. (WDAM QD)*
48.00
DOWN
DOWN
47.15
46.00
49.30
50.30
Al Meera Consumer Goods Co. (MERS)
147.00
UP
UP
145.90
142.70
150.00
151.50
Industries Qatar (IQCD QD)*
173.00
DOWN
FLAT
173.00
171.00
174.60
178.30
Qatar Electricity & Water Co. (QEWS QD)
181.60
FLAT
UP
180.00
177.20
182.50
184.00
Gulf International Services (GISS QD)
82.50
UP
UP
81.00
79.40
84.60
86.00
Qatari Investors Group (QIGD QD)
48.60
FLAT
UP
48.50
47.70
50.10
52.40
Barwa Real Estate Co. (BRES QD)
30.65
DOWN
DOWN
30.10
29.70
30.85
31.20
United Development Co. (UDCD QD)
22.54
DOWN
DOWN
22.38
22.00
22.84
23.10
Ooredoo (ORDS QD)
148.20
UP
UP
145.90
144.00
149.00
150.00
Vodafone Qatar (VFQS QD)
11.53
UP
UP
11.44
11.19
11.60
12.09
Nakilat (QGTS QD)
20.80
DOWN
FLAT
20.74
20.50
21.07
21.32
Milaha (QNNS QD)
89.00
DOWN
UP
88.00
87.00
90.00
91.30
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
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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
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