The document provides a technical analysis of the QE Index, Al Rayan Islamic Index, and key stocks to consider in Qatar. It analyzes the short-term trends for these indexes and stocks, and identifies support and resistance levels. Gulf International Services is identified as having an upmove short-term trend, while the Al Rayan Islamic Index is expected to see a downmove. Contact information is provided for research analysts at QNB Financial Services.

1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Downmove
Gulf International Services: Short-Term – Upmove
The QE Index rebounded and gained around 18 points (0.16%) to
close at 11,173.97. Moreover, the index managed to reclaim the
11,170.0 level as buying interest pushed prices higher. However,
accumulation is not recommended until a further bullish confirmation
occurs. The index needs to cling onto 11,170.0 in order to advance
toward 11,200.0. On the flip side, any dip below 11,170.0 on a
closing basis may drag the index to test the 11,150.0 level.
The QERI Index declined for the second consecutive day and fell
around -0.16% to close the session at 3,211.50. We believe although
the index is trading close to its immediate support of the 21-day
moving average, it may not hold onto it and drift down further to test
its immediate support near 3,200.0. Moreover, the RSI is moving
down toward the mid-line, while the MACD is diverging away from the
signal line in a bearish manner indicating continued weakness.
GISS witnessed a gap-up opening and rallied 5.03%. The stock
respected the support of QR76.0 and rebounded on the back of large
volumes, which is a positive sign for buyers. We believe until the stock
manages to hold onto QR78.0, the stock’s short-term outlook remains
bullish and may continue to advance toward QR81.0. Meanwhile, the
RSI has given a bullish divergence in the overbought territory
suggesting the possibility of a short-term rally.
Nakilat: Short-Term – Breakout
Ooredoo: Short-Term – Downmove
Vodafone Qatar: Short-Term – Downmove
QGTS witnessed a gap-down opening and momentarily moved below
the long-term support of the ascending trendline, but reversed and
breached the 21-day moving average. Moreover, the stock developed
a bullish engulfing candle pattern indicating a likely higher move. The
stock is currently at the threshold of its next resistance of QR21.07.
With buying interest also picking up, we believe QGTS may be ready
for a move above QR21.07 targeting the QR21.32 level.
ORDS dipped below the important support of QR149.0 yesterday.
Moreover, the stock has been witnessing a steady decline since
topping the rally at QR159.0. We believe this strong breach of support
has bearish implications and provides a downside target of
QR145.90. However, if the stock manages to reclaim QR149.0 on a
closing basis, it may halt its downmove. Meanwhile, the MACD has
crossed the signal line into the negative territory.
VFQS penetrated below the support of QR11.44 on Thursday and fell
further yesterday indicating continuation of this downmove. The stock
is currently trading close to its immediate support of the 21-day
moving average. A dip below it may pull the stock further down and
test the QR11.19 level. Conversely, if the stock manages to cling onto
the 21-day moving average, it may proceed toward QR11.44.
Meanwhile, the RSI and the MACD lines are in downtrend mode.
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2. Name (Ticker)
Last Close
Trend
Short Term
Support
Long Term
First
Resistance
Second
First
Second
Qatar Exchange Index (QE Index)
11,173.97
UP
UP
11,100.00
11,060.00
11,200.00
11,250.00
Al Rayan Islamic Index (QERI Index)
3,211.50
FLAT
UP
3,199.21
3,150.00
3,240.37
3,270.00
Masraf Al Rayan (MARK QD)
34.70
UP
UP
34.15
33.50
35.00
36.00
Commercial Bank of Qatar (CBQK QD)
71.00
DOWN
DOWN
70.90
70.20
71.80
72.80
Doha Bank (DHBK QD)
64.00
FLAT
UP
63.30
62.21
64.80
66.00
Qatar Islamic Bank (QIBK QD)
75.50
UP
UP
75.00
74.00
76.00
77.00
Qatar International Islamic Bank (QIIK QD)
67.50
DOWN
UP
67.00
66.50
68.00
69.40
Qatar Insurance (QATI QD)
78.50
UP
UP
78.00
76.80
80.00
81.50
National Leasing Holding Co. (NLCS QD)
30.70
FLAT
DOWN
29.95
29.15
31.00
31.45
Widam Food Co. (WDAM QD)
50.70
DOWN
DOWN
50.20
49.50
51.00
51.90
Al Meera Consumer Goods Co. (MERS)
147.00
UP
UP
145.90
142.70
150.00
151.50
Industries Qatar (IQCD QD)
179.70
UP
UP
178.30
174.60
182.50
185.00
Qatar Electricity & Water Co. (QEWS QD)
183.00
UP
UP
182.50
180.00
184.00
186.00
Gulf International Services (GISS QD)*
79.30
UP
UP
78.00
76.00
81.00
82.00
Qatari Investors Group (QIGD QD)
47.00
DOWN
UP
46.00
44.20
47.70
49.00
Barwa Real Estate Co. (BRES QD)
31.25
DOWN
UP
31.20
30.85
32.00
32.50
United Development Co. (UDCD QD)
22.71
DOWN
DOWN
22.38
22.00
22.84
23.10
Ooredoo (ORDS QD)*
148.00
UP
UP
145.90
144.00
149.00
151.00
Vodafone Qatar (VFQS QD)*
11.31
FLAT
UP
11.19
11.00
11.44
11.60
Nakilat (QGTS QD)*
21.00
UP
UP
20.74
20.50
21.07
21.32
Milaha (QNNS QD)
88.90
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.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
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