1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Neutral
Al Rayan Islamic Index: Short-Term – Neutral
Barwa Real Estate Co.: Short-Term – Pull Back
The QE index declined around 29 points (-0.28%) to close at
10,366.21. The index witnessed some profit-booking near the
10,400.0 level as sellers pushed prices lower. The index is currently
trading close to its important support near 10,360.0. If the index dips
below this level on a closing basis, bears may take full control and
may drag it toward 10,300.0. Conversely, if the index clings on to
10,360.0, it may advance and test 10,400.0.
The QERI Index moved marginally higher around 0.07% to close the
session at 3,041.46. The support to watch out for would be near
3,036.0. On the other hand, the resistance would be seen near
3,048.0. We expect the index to oscillate between these levels. Only
a move above or below these levels may decide the next trend.
Meanwhile, the RSI is stalling in the overbought territory, while the
MACD is about to close with the signal line.
BRES failed to make any further headway above the descending
trendline and moved lower around 0.67% yesterday. Moreover the
stock developed a bearish Marubozu candle pattern indicating a likely
correction from the current level. We believe although the stock is
trading exactly at its support of QR29.80, it is unlikely to cling on to it
and may drift lower to test QR29.50. Both the RSI and the MACD
lines are pointing lower, thus reinforcing our current bearish outlook.
Nakilat: Short-Term – Pull Back
Vodafone Qatar: Short-Term – Bounce Back
Widam Food Co.: Short-Term – Bounce Back
QGTS penetrated below the support of QR21.07 after failing to move
above the ascending trendline yesterday. Moreover, the stock
developed a bearish engulfing candle pattern indicating that the stock
may move down from the current level and test QR20.60. In addition,
the RSI has shown a bearish divergence suggesting a likely
correction. However, if the stock manages to reclaim QR21.07 on a
closing basis it may attract buyers.
VFQS cleared the resistance of QR11.19 after repeated failed
attempts over the past few days. Moreover, the breakout happened
on the back of large volumes indicating rising buying interest. We
believe if the stock manages to cling on to its support of QR11.19, a
continued rise toward QR11.44 is possible. However, a dip below
QR11.19 may indicate a false breakout. Meanwhile, the MACD line is
diverging away from the signal line and is moving upward.
WDAM surpassed the resistances of the 55-day moving average
(currently at QR49.81) and QR51.0 in a single swoop and surged
around 5.92% on the back of large volumes yesterday. We believe
this strong breach of resistances has bullish implications and provides
an upside target of QR53.0. Meanwhile, the RSI and the MACD lines
are moving upward in a bullish manner and are showing no
immediate trend reversal signs, thus signifying strength.
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)
10,366.21
UP
UP
10,200.00
10,000.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,041.46
UP
UP
3,000.00
2,900.00
3050.00
3,125.00
Masraf Al Rayan (MARK QD)
33.20
UP
UP
24.00
23.20
33.65
34.69
Commercial Bank of Qatar (CBQK QD)
69.30
UP
UP
63.90
62.40
84.20
87.20
Doha Bank (DHBK QD)
56.70
UP
UP
42.00
39.50
58.15
59.20
Qatar Islamic Bank (QIBK QD)
69.60
UP
UP
65.00
64.30
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
61.50
UP
UP
47.90
45.00
62.12
62.78
Qatar Insurance (QATI QD)
67.70
UP
UP
58.50
57.00
69.10
70.00
National Leasing Holding Co. (NLCS QD)
31.10
UP
DOWN
29.15
28.75
43.90
45.00
Widam Food Co. (WDAM QD)*
51.90
UP
UP
47.00
46.25
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.00
UP
UP
129.90
128.50
138.50
140.15
Industries Qatar (IQCD QD)
168.00
UP
UP
144.10
142.00
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
167.70
UP
UP
140.00
132.10
172.00
174.00
Gulf International Services (GISS QD)
58.80
UP
UP
30.50
29.50
60.15
61.25
Qatari Investors Group (QIGD QD)
39.40
UP
UP
20.36
20.00
41.50
43.75
Barwa Real Estate Co. (BRES QD)*
29.80
UP
UP
22.80
19.50
30.50
30.85
United Development Co. (UDCD QD)
23.30
UP
UP
17.06
16.00
25.30
25.90
Ooredoo (ORDS QD)
135.10
FLAT
DOWN
108.00
98.10
146.00
148.00
Vodafone Qatar (VFQS QD)*
11.20
UP
UP
8.50
8.24
11.50
12.15
Nakilat (QGTS QD)*
20.97
UP
UP
15.08
14.52
21.70
22.80
Milaha (QNNS QD)
88.00
UP
UP
58.20
56.70
90.25
95.50
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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