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Daily Technical Trader – Qatar

Tuesday, 03 February 2015

Stocks Covered Today

Ticker Price Target

BRES* 45.80 48.00

QGTS 23.90 24.23 * Medium-term

QSE Index

Level % Ch. Vol. (mn)

Last 12,117.70 0.5 7.2

Resistance/Support

Levels 1st

2nd

3rd

Resistance 12,250 12,350 12,600

Support 12,000 11,850 11,750

QSE Index Commentary

Overview: The upside swing the QSE undertook could continue to the next resistance level of 12,250. The MACD is still below the zero line but pointing north and the RSI is trying to push above the neutral zone. That said; it is important to notice that the SMAs created a Death Cross as the 100SMA crossed below the 200SMA (circled in red). This is a bearish sign for the long term. Expected Resistance Level: 12,250 Expected Support Level: 11,850

QSE Index (Daily)

Source: Bloomberg, QNBFS Research

QE Summary

Market Indicators 02 Feb 15 01 Feb 15 %Ch.

Value Traded (QR mn) 468.0 374.5 25.0

Ex. Mkt. Cap. (QR bn) 655.9 648.8 1.1

Volume (mn) 8.4 8.5 -1.2

Number of Trans. 5,793 4,815 20.3

Companies Traded 41 42 -2.4

Market Breadth 20:19 15:22 –

QE Indices

Market Indices Close 1D% RSI

Total Return 18,188.27 1.1 54.6

All Share Index 3,123.38 0.7 54.5

Banks 3,199.95 1.6 54.9

Industrials 3,898.75 0.5 52.5

Transportation 2,379.40 1.1 63.6

Real Estate 2,285.61 0.0 51.7

Insurance 3,878.69 -0.2 60.4

Telecoms 1,362.81 -1.2 41.5

Consumer 7,168.96 0.1 58.0

Al Rayan Islamic 4,150.82 0.8 57.0

RSI 14 (Over Bought)

Ticker Close 1D% RSI

RSI 14 (Over Sold)

Ticker Close 1D% RSI

QSE Index (30min)

Source: Bloomberg, QNBFS Research

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BRES (Medium-term)

Price % Ch. Volume

Last 45.80 1.78 865,839

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 46.00 48.00 50.00

Support 42.00 38.50 35.00

Commentary

Overview: The name is trading at price range between QR42.00 and QR46.00. A sustained break above QR46.00 could propel the stock to QR48.00 and possibly beyond. A break above QR46.00 is essential because the price at that point could penetrate the top border of the triangle created by the price. Technical Indicators favor that idea. Over the medium-term, charts show the MACD above the zero line and pointing north. The RSI is also departing from the neutral zone. Moreover, The same patterns are exhibited on the weekly and the daily charts. Expected Target Price: QR48.00 – QR50.00 A sustained break over the QR46.00 is needed to trigger the buy recommendation. Suggested Stop-Loss Price: QR44.0 A breach below the level means the drop could continue to the lower part of the triangle.

(Weekly)

Source: Bloomberg, QNBFS Research

(Daily)

Source: Bloomberg, QNBFS Research

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QGTS

Price % Ch. Volume

Last 23.90 1.27 181,792

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 24.23 24.80 25.00

Support 23.40 23.15 22.00

Commentary

Overview: The name just broke above an ascending triangle and closed above its moving average which is a positive sign in the short-term. In addition, the MACD is pointing up and above the zero line in both time frames. The RSI is also pointing up on both time frames and has not reached the overbought area yet. Thus, we conclude that this move could continue further on the back of the expected continuation of the bullish momentum. Expected Target Price: QR24.23 – QR24.80 A break above QR23.90 is needed for the momentum to continue upwards. Suggested Stop-Loss Price: QR23.40

(Daily)

Source: Bloomberg, QNBFS Research

(Hourly)

Source: Bloomberg, QNBFS Research

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Intraday Fibonacci Support and Resistance Levels Daily Moving Averages Support Levels Resistance Levels

Ticker Close 3rd

2nd

1st

Pivot 1st

2nd

3rd

50 SMA 100 SMA 200 SMA

QSE Index 12,117.70 11,949.61 11,997.77 12,027.52 12,075.68 12,123.84 12,153.59 12,201.75 12,240.64 12,986.97 12,990.45

Total Return 18,188.27 17,935.96 18,008.25 18,052.91 18,125.19 18,197.48 18,242.14 18,314.42 18,259.10 19,371.09 19,374.85

All Share 3,123.38 3,096.59 3,104.27 3,109.01 3,116.68 3,124.36 3,129.10 3,136.77 3,131.22 3,301.53 3,299.35

Al Rayan Islamic 4,150.82 4,082.65 4,102.18 4,114.25 4,133.78 4,153.31 4,165.38 4,184.91 4,115.87 4,372.19 4,365.37

Banks & Financials Services

MARK 47.80 45.40 46.09 46.51 47.20 47.89 48.31 49.00 45.11 49.21 51.04

CBQK 68.50 67.37 67.71 67.92 68.27 68.61 68.82 69.17 68.22 70.51 69.15

DHBK 58.00 57.40 57.63 57.77 58.00 58.23 58.37 58.60 56.72 58.09 59.49

QIBK 108.00 104.53 105.53 106.14 107.13 108.13 108.74 109.73 102.20 107.81 103.55

QIIK 81.50 78.37 79.28 79.85 80.77 81.68 82.25 83.17 80.36 84.18 84.52

Insurance

QATI 87.90 87.23 87.62 87.85 88.23 88.62 88.85 89.23 86.29 92.30 87.96

Consumer Goods & Services

MCGS 126.90 123.70 125.19 126.11 127.60 129.09 130.01 131.50 120.33 124.27 110.62

Industrials

IQCD 153.50 143.03 146.09 147.98 151.03 154.09 155.98 159.03 167.25 179.46 180.51

QEWS 195.50 192.97 193.69 194.14 194.87 195.59 196.04 196.77 188.03 188.34 187.00

GISS 104.10 100.90 101.86 102.45 103.40 104.36 104.95 105.90 96.99 109.67 105.80

QIGD 38.80 37.60 38.00 38.25 38.65 39.05 39.30 39.70 40.29 46.99 53.80

Real Estate

BRES 45.80 44.33 44.79 45.07 45.53 45.99 46.27 46.73 43.79 43.59 41.78

UDCD 24.25 24.08 24.18 24.24 24.33 24.43 24.49 24.58 24.18 26.05 26.23

ERES 14.61 14.47 14.53 14.57 14.63 14.69 14.73 14.79 15.40 17.45 21.01

MRDS 20.45 20.18 20.28 20.34 20.44 20.54 20.60 20.70 19.63 21.72 20.92

Telecommunication

ORDS 113.20 111.47 112.31 112.83 113.67 114.51 115.03 115.87 116.69 122.31 130.06

VFQS 15.30 14.98 15.09 15.15 15.26 15.37 15.43 15.54 15.92 18.29 18.72

Transportation

QGTS 23.90 23.23 23.42 23.54 23.73 23.92 24.04 24.23 23.02 23.67 23.65

QNNS 102.00 99.07 99.98 100.55 101.47 102.38 102.95 103.87 96.99 97.37 96.00 Source: Bloomberg, QNBFS Research; Note: Numbers in Italics denote moving averages that are above the given index level/stock price

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Definitions:

Candlestick: A chart that displays the high, low, opening and closing prices for a security in a single period. The body of the candle is made up by the opening

and the closing prices, i.e., the taller the body the greater the range between these two prices and vice versa. A colored candle denotes a closing price that is

lower than the opening price, while a white candle shows the opposite. The candlestick's shadows or wicks show the period's high and low prices and how they

compare to the opening and closing price. In general, the shape of the candle will vary upon the positions of the period's high, low, opening and closing prices.

Support: A level that could cause more buyers to step in in order to prevent the security from falling or causing the security price to head higher.

Resistance: An inverse of a support level. A resistance area or level could cause more sellers to step in in order to prevent the security from rising or causing the

security price to head lower.

SMA (Simple Moving Average): Is an arithmetic average, which calculates the average price of a security over a defined number of periods and is thus

considered a lagging indicator. SMAs used in our analysis refer to closing prices. In general, SMAs serve many purposes, such as a smoothing tool, an indicative

price direction and potential support/resistance levels.

Market Breadth: Breadth indicates the number of securities that have closed higher vs. the number of decliners in a particular exchange.

MACD (Moving Average Convergence/Divergence): Is a trading indicator, which shows changes in the strength, direction, momentum and duration of a trend in

a stock's price through a collection of three time series calculated from historical closing price data.

RSI (Relative Strength Index): Is a momentum indicator that compares a security’s price gains to its losses for a predetermined number of periods (we generally

use 14 periods). The RSI attempts to point out how a security, in relative terms, is in the overbought/oversold zone. Securities with a RSI above 70 could be

considered as overbought, and below 30 could be considered as oversold.

Pattern/Formation: Is a graphical presentation of a security’s price activity over a certain period of time. Formations come in different shapes (such as, head &

shoulders, triangles, flags, and so on). They can be used to identify potential trends, reversal of trends, price targets, entry and exit points, etc.

Fibonacci Retracements: Are horizontal lines that indicate expected areas of support/resistance for a security based on a predetermined price movement. These

levels are usually indicated by Fibonacci ratios of 23.6%, 38.2%, 50.0%, 61.8% and 100% from that particular movement.

Fibonacci Pivot and Intra-day Support/Resistance: A Pivot Point is generally used to formulate expected future support/resistance levels. From the base Pivot

Point, Fibonacci multiples of the high-low differential are added to form resistance levels and subtracted to form support levels.

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Contacts

Saugata Sarkar Abdullah Amin, CFA Shahan Keushgerian

Head of Research Senior Research Analyst Senior Research Analyst

Tel: (+974) 4476 6534 Tel: (+974) 4476 6569 Tel: (+974) 4476 6509 saugata.sarkar@qnbfs.com.qa abdullah.amin@qnbfs.com.qa shahan.keushgerian@qnbfs.com.qa

Sahbi Kasraoui Ahmed Al-Khoudary QNB Financial Services SPC

Manager – HNWI Head of Sales Trading – Institutional Contact Center: (+974) 4476 6666

Tel: (+974) 4476 6544 Tel: (+974) 4476 6548 PO Box 24025 sahbi.alkasraoui@qnbfs.com.qa ahmed.alkhoudary@qnbfs.com.qa Doha, Qatar

Disclaimer and Copyright Notice: This publication has been prepared by QNB Financial Services SPC (“QNBFS”) a wholly-owned subsidiary of QNB SAQ (“QNB”). QNBFS is regulated by the Qatar Financial Markets Authority and the Qatar Exchange QNB SAQ 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. QNBFS accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment 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. 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. For reports dealing with Technical Analysis, expressed opinions and/or recommendations may be different or contrary to the opinions/recommendations of QNBFS Fundamental Research as a result of depending solely on the historical technical data (price and volume). 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. This report may not be reproduced in whole or in part without permission from QNBFS.