1. TECHNICAL ANALYSIS: QE INDEX AND KEY STOCKS TO CONSIDER
QE Index: Short-Term – Bounce Back
Al Rayan Islamic Index: Short-Term – Bounce Back
Masraf Al Rayan: Short-Term – Bounce Back
The QE Index rose by around 47 points (0.46%) to close at
10,436.52. The index breached the 10,400.0 psychological level as
buyers pushed prices higher. The significant development was the
index holding on to its gains on a closing basis. We believe the
current higher push has enough steam to test and surpass the
resistance near 10,445.0, targeting 10,500.0. However, any failure to
clear this level may pull the index to test 10,400.0.
The QERI Index gained around 0.61% and tagged another new alltime high to close the session at 3,086.86. The index after breaching
the congestion zone near 3,048.0 on Thursday continued its rally,
indicating strength in the current momentum. We believe the index
may advance further and tag a new high as there are no imminent
trend reversal signs. However, traders may need to keep a close
watch near the support of the 3,071.0 level in case of any declines.
MARK moved higher and tagged another new all-time high yesterday.
The stock has been moving up aggressively over the past couple of
sessions since it breached the stiff resistance near QR33.50. We
believe MARK is trending strong on the charts and may continue to
proceed ahead tagging a new high. Moreover, the RSI and the MACD
lines are trending higher suggesting a further advance. Conversely, a
dip below QR34.15 on a closing basis may halt its upmove.
Barwa Real Estate Co.: Short-Term – Bounce Back
United Development Co.: Short-Term – Bounce Back
Ooredoo: Short-Term – Bounce Back
BRES breached the long-term resistance of QR30.85 and tagged a
new 52-week high yesterday. The recent price action and pick up in
volumes indicate that BRES may continue to push the price higher
toward QR31.90. Moreover, the RSI has shown a bullish divergence,
while the MACD is widening away from the signal line in a bullish
manner indicating a likely rally. However, a dip below QR31.0 on a
closing basis may see buyers waiting near QR30.85.
UDCD penetrated above the resistance of QR23.34 yesterday after
consolidating below this level over the past few days. We believe if
UDCD manages to cling on to this level on a closing basis a
continued rise toward QR23.55 looks possible. However, a retreat
below QR23.34 may indicate a false breakout. Meanwhile, the RSI is
moving up toward the overbought territory, while the MACD is about
to cross the signal line into the positive territory.
ORDS rebounded and cleared the resistances of QR136.0 and 21day moving average (currently at QR136.77) in a single swoop.
Notably, volumes were also large on the breakout. Moreover, the
stock developed a bullish engulfing candle pattern indicating a likely
advance from the current level. We believe the stock may now march
toward its next resistance of QR138.0. In addition, the RSI has
rejected the mid-line and is moving upward.
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)
10,436.52
UP
UP
10,400.00
10,350.00
10,470.00
10,575.00
Al Rayan Islamic Index (QERI Index)
3,086.86
UP
UP
3,071.00
3,050.00
3,150.00
3,225.00
Masraf Al Rayan (MARK QD)*
34.30
UP
UP
34.15
33.50
34.90
35.45
Commercial Bank of Qatar (CBQK QD)
69.50
UP
UP
69.00
68.20
84.20
87.20
Doha Bank (DHBK QD)
56.50
FLAT
UP
56.30
55.20
58.15
59.20
Qatar Islamic Bank (QIBK QD)
69.90
UP
UP
69.00
68.25
78.50
79.60
Qatar International Islamic Bank (QIIK QD)
60.80
UP
UP
60.20
59.65
62.12
62.78
Qatar Insurance (QATI QD)
67.00
UP
UP
66.50
65.90
69.10
70.00
National Leasing Holding Co. (NLCS QD)
31.05
FLAT
DOWN
31.00
29.25
43.90
45.00
Widam Food Co. (WDAM QD)
50.70
UP
UP
50.10
49.35
69.10
78.50
Al Meera Consumer Goods Co. (MERS)
135.30
UP
UP
135.00
133.90
138.50
140.15
Industries Qatar (IQCD QD)
166.40
FLAT
UP
165.00
163.20
175.20
176.80
Qatar Electricity & Water Co. (QEWS QD)
168.10
UP
UP
167.00
165.50
172.00
174.00
Gulf International Services (GISS QD)
58.90
UP
UP
58.50
58.00
60.15
61.25
Qatari Investors Group (QIGD QD)
41.20
UP
UP
40.40
39.50
41.50
43.75
Barwa Real Estate Co. (BRES QD)*
31.25
UP
UP
31.10
30.85
31.90
32.75
United Development Co. (UDCD QD)*
23.39
UP
UP
23.15
22.85
25.30
25.90
Ooredoo (ORDS QD)*
137.10
UP
DOWN
136.77
136.00
146.00
148.00
Vodafone Qatar (VFQS QD)
12.00
UP
UP
11.85
11.70
12.15
13.32
Nakilat (QGTS QD)
21.05
UP
UP
20.70
20.00
21.70
22.80
Milaha (QNNS QD)
85.70
DOWN
FLAT
85.00
84.20
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.
COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS.
Page 2 of 2