1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Pull Back
Al Rayan Islamic Index: Short-Term – Pull Back
Qatar Electricity & Water Co.: Short-Term – Pull Back
The QE Index witnessed sustained selling pressure for the second
consecutive day and penetrated below 10,300.0 to close at 10,283.0.
The index formed a bearish Marubozu candle pattern, indicating
weakness at the current level. If the index moves below 10,250.0, it
may fall further to test the 10,233.5 level. However, on the flip side,
an upmove above 10,300.0 may attract buyers. Meanwhile, both the
RSI and the MACD are bearish.
The QERI Index momentarily moved above the 2,985.84 level, but
failed to cling on to it and declined around 8 points (-0.25%) to close
the session at 2,980.89. We believe the bears will continue to
dominate the bulls and push prices lower toward 2,952.87. Further,
the RSI is in downtrend mode, indicating weakness in the index.
However, if the index manages to close above 2,985.84, the index
may resume its uptrend.
After failing to breach the resistance of QR169.80 on Wednesday,
QEWS declined around 0.53% to close the session at QR168.10. The
stock developed a bearish Marubozu Candle pattern, which indicates
that the stock may remain weak in the short-term. With the RSI and
the MACD lines pointing lower, QEWS’ preferred direction appears to
be toward the downside, targeting QR167.0.
Qatari Investors Group: Short-Term – Pull Back
Barwa Real Estate Co.: Short-Term – Bounce Back
Gulf International Services: Short-Term – Pull Back
QIGD penetrated below the support of QR39.50 on Thursday.
Notably, volumes were also high on the decline. The stock fell
drastically by 5.57% and witnessed heavy selling pressure, indicating
continued weakness. We believe this continued weakness may
cause QIGD to breach the QR36.00 level. Meanwhile, the RSI is
beginning to trend lower in the overbought zone. However, if the stock
manages to move above QR39.50 it may attract buyers.
After failing to make an upward progress on Wednesday, BRES
rebounded from the QR28.45 level on Thursday. Traders should
watch out for a breakout above the QR30 level on a closing basis.
The short-term support is now at QAR 28.45. If the price falls below
that level, there is a possibility of a move toward QR27.65.
Meanwhile, the RSI remains relatively overbought, while the MACD
appears to be bullish with no near-term weakness signs.
After consolidating in the range of QR59.80-QR58.50, GISS finally
broke down and breached the support level of QR58.50 as well as the
21-day moving average (currently at QR58.15) in a single swoop.
With both the RSI and the MACD lines trending down, it seems GISS
may drift lower and test its immediate support level of QR57.20. Thus,
the stock’s preferred direction appears downward, until the QR59.80
level is not breached on a closing basis.
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)
10,283.00
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
2,980.89
UP
UP
2,900.00
2,800.00
3050.00
3,125.00
Masraf Al Rayan (MARK QD)
32.00
UP
UP
24.00
23.20
32.90
33.65
Commercial Bank of Qatar (CBQK QD)
69.40
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.80
UP
UP
42.00
39.50
58.15
59.20
Qatar Islamic Bank (QIBK QD)
68.50
UP
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
58.40
UP
UP
47.90
45.00
60.80
61.50
Qatar Insurance (QATI QD)
65.40
UP
UP
58.50
57.00
66.30
67.15
National Leasing Holding Co. (NLCS QD)
31.00
FLAT
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)
47.75
DOWN
DOWN
47.00
46.25
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.00
FLAT
FLAT
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
166.80
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)*
168.10
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)*
58.10
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)*
38.15
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)*
29.60
UP
UP
22.80
19.50
29.90
30.50
United Development Co. (UDCD QD)
23.60
UP
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)
137.90
DOWN
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)
10.56
UP
UP
8.50
8.24
11.15
11.75
Nakilat (QGTS QD)
20.06
UP
UP
15.08
14.52
21.15
21.70
Milaha (QNNS QD)
87.60
UP
UP
58.20
56.70
89.70
90.25
Banks and Financial Services
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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