1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Masraf Al Rayan: Short-Term – Pull Back
The QE Index declined marginally by around 2 points (-0.02%) to
close the session at 10,434.10. The index momentarily managed to
move above the important resistance of 10,445.44, but was not able
to cling on to the gains and retreated. The index needs to surpass the
resistance of 10,445.44 and sustain above it in order to keep its
upward momentum going. Any failure to move above this level may
drag the index to test the 10,400.0 level.
The QERI Index tagged another new all-time high, but later reversed
and penetrated below the support near 3,071.0. This action reveals
that the index may be in need of consolidation as traders backed
away from higher prices. Moreover, there is a bearish divergence on
the RSI line, which often signals that the recent uptrend may be
running out of steam. We believe if the index fails to reclaim the
3,071.0 level on a closing basis, it may drift lower toward 3,048.0.
MARK tagged another new all-time high, but reversed and closed at
its intraday low as there was exhaustion on the part of the buyers.
Moreover, the stock developed a shooting star candle pattern, which
often leads to either consolidation or decline. We believe although the
stock is sitting exactly at the support of QR34.15, it may not cling on
to it and head lower to test QR33.50. On the flip side, MARK may
move higher if it holds on to the QR34.15 level.
Qatari Investors Group: Short-Term – Pull Back
Vodafone Qatar: Short-Term – Pull Back
Doha Bank: Short-Term – Bounce Back
QIGD failed to make any further headway above the resistance of
QR41.50 and declined yesterday. Moreover, the stock developed a
bearish Marubozu candle pattern indicating a likely dip from the
current level toward QR40.40. Any sustained weakness below this
level may pull the stock to test QR40.0. Moreover, the RSI is declining
from the overbought territory, while the MACD has crossed the signal
line into the negative territory, thus supporting our bearish outlook.
VFQS developed a shooting star candle pattern on Sunday, which
often leads to consolidation or decline. Moreover, the stock declined
yesterday and fell under the supports of QR11.85 and the long-term
ascending trendline at QR11.70 in a single swoop, thus providing a
confirmation of the trend reversal pattern. In addition, the RSI has
shown a bearish divergence. We believe VFQS may decline toward
the support of QR11.44, followed by QR11.19.
DHBK breached the resistances of the 21-day moving average
(currently at QR56.66) and QR57.40 in a single trading session,
tagging a new 52-week high yesterday. We believe this strong breach
of resistances on the back of large volumes has bullish implications.
The stock may now march toward its next resistance of QR59.0.
Moreover, the RSI has shown a bullish divergence and is moving up,
while the MACD is about to enter positive territory.
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)
10,434.10
UP
UP
10,400.00
10,360.00
10,445.44
10,500.00
Al Rayan Islamic Index (QERI Index)
3,066.51
UP
UP
3,048.00
3,036.00
3071.00
3,100.00
Masraf Al Rayan (MARK QD)*
34.15
UP
UP
33.50
32.85
34.90
35.45
Commercial Bank of Qatar (CBQK QD)
70.00
UP
UP
69.60
69.00
70.50
70.90
Doha Bank (DHBK QD)*
58.10
UP
UP
57.40
56.90
59.00
59.65
Qatar Islamic Bank (QIBK QD)
69.60
UP
UP
69.00
68.25
70.30
70.90
Qatar International Islamic Bank (QIIK QD)
60.60
UP
UP
60.10
59.80
61.20
62.00
Qatar Insurance (QATI QD)
67.00
UP
UP
66.50
65.90
67.50
67.90
National Leasing Holding Co. (NLCS QD)
31.25
UP
DOWN
31.00
30.60
31.45
32.00
Widam Food Co. (WDAM QD)
51.50
UP
UP
51.00
50.20
52.00
53.00
Al Meera Consumer Goods Co. (MERS)
135.70
UP
UP
135.00
133.90
136.00
137.00
Industries Qatar (IQCD QD)
165.90
DOWN
UP
165.00
163.20
166.50
167.00
Qatar Electricity & Water Co. (QEWS QD)
168.60
UP
UP
167.00
166.30
169.00
169.80
Gulf International Services (GISS QD)
58.90
UP
UP
58.50
58.00
59.50
60.00
Qatari Investors Group (QIGD QD)*
40.80
UP
UP
40.40
39.50
41.50
42.20
Barwa Real Estate Co. (BRES QD)
30.95
UP
UP
30.85
30.20
31.90
32.75
United Development Co. (UDCD QD)
23.21
DOWN
UP
23.15
22.85
23.34
23.55
Ooredoo (ORDS QD)
136.50
DOWN
DOWN
136.00
135.50
136.80
137.00
Vodafone Qatar (VFQS QD)*
11.50
UP
UP
11.44
11.19
11.70
11.85
Nakilat (QGTS QD)
21.14
UP
UP
21.07
20.60
21.32
21.44
Milaha (QNNS QD)
85.90
DOWN
FLAT
85.00
84.10
86.00
87.30
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
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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