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COPYRIGHT: No part of this document may be reproduced without the explicit written permission of QNBFS Page 1 of 6 Daily Technical Trader Qatar Wednesday, 19 November 2014 Stocks Covered Today Ticker Price Direction Tgt. ORDS 119.00 Down 122.70 QIBK 111.00 Flat 112.70 QSE Index Price % Ch. Vol. (mn) Last 13,809.44 0.3 12.6 Resistance/Support (Daily) Levels 1 st 2 nd 3 rd Resistance 14,000 14,350 14,600 Support 13,800 13,700 13,660 QSE Index Commentary Overview: The Index managed to close marginally above the 13,800 level. Although that is considered positive, the closing needed to be stronger to create the proper momentum for it to continue upwards. The 13,800 level is considered as a soft support at this point. That said, the odds are increasing in favor of continuing the upward movement. The major indicators finished the day with a positive attitude, which may continue in the coming session. Expected Target: 14,000 The Index needs to sustain its gains with higher volumes to continue to the projected target. Suggested Stop-loss: 13,700 QSE Index (Daily) Source: Bloomberg, QNBFS Research QE Summary Market Indicators 18 Nov 14 17 Nov 14 %Ch. Value Traded (QR mn) 815.8 1,113.3 -26.7 Ex. Mkt. Cap. (QR bn) 748.8 745.6 0.4 Volume (mn) 12.1 17.2 -29.7 Number of Trans. 8,491 8,489 0.0 Companies Traded 42 42 0.0 Market Breadth 23:15 17:23 QE Indices Market Indices Close 1D% RSI Total Return 20,596.65 0.3 54.4 All Share Index 3,500.83 0.3 56.0 Banks 3,475.32 0.9 55.8 Industrials 4,566.63 0.4 51.6 Transportation 2,450.38 0.5 65.0 Real Estate 2,789.90 -1.5 60.3 Insurance 4,117.78 0.0 56.9 Telecoms 1,486.48 -0.1 33.0 Consumer 7,689.73 0.9 68.5 Al Rayan Islamic 4,699.31 0.1 61.1 RSI 14 (Over Bought) Ticker Close 1D% RSI IHGS 198.50 1.1 99.1 MERS 239.60 2.8 88.6 BRES 51.30 -5.0 85.5 WDAM 70.50 -0.7 80.4 GWCS 64.50 0.3 78.6 RSI 14 (Over Sold) Ticker Close 1D% RSI QIGD 46.35 -0.7 29.7 QSE Index (30Min) Source: Bloomberg, QNBFS Research

19 November Daily technical trader

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Daily Technical Trader – Qatar

Wednesday, 19 November 2014

Stocks Covered Today

Ticker Price Direction Tgt.

ORDS 119.00 Down 122.70

QIBK 111.00 Flat 112.70

QSE Index

Price % Ch. Vol. (mn)

Last 13,809.44 0.3 12.6

Resistance/Support (Daily)

Levels 1st

2nd

3rd

Resistance 14,000 14,350 14,600

Support 13,800 13,700 13,660

QSE Index Commentary

Overview: The Index managed to close marginally above the 13,800 level. Although that is considered positive, the closing needed to be stronger to create the proper momentum for it to continue upwards. The 13,800 level is considered as a soft support at this point. That said, the odds are increasing in favor of continuing the upward movement. The major indicators finished the day with a positive attitude, which may continue in the coming session. Expected Target: 14,000 The Index needs to sustain its gains with higher volumes to continue to the projected target. Suggested Stop-loss: 13,700

QSE Index (Daily)

Source: Bloomberg, QNBFS Research

QE Summary

Market Indicators 18 Nov 14 17 Nov 14 %Ch.

Value Traded (QR mn) 815.8 1,113.3 -26.7

Ex. Mkt. Cap. (QR bn) 748.8 745.6 0.4

Volume (mn) 12.1 17.2 -29.7

Number of Trans. 8,491 8,489 0.0

Companies Traded 42 42 0.0

Market Breadth 23:15 17:23 –

QE Indices

Market Indices Close 1D% RSI

Total Return 20,596.65 0.3 54.4

All Share Index 3,500.83 0.3 56.0

Banks 3,475.32 0.9 55.8

Industrials 4,566.63 0.4 51.6

Transportation 2,450.38 0.5 65.0

Real Estate 2,789.90 -1.5 60.3

Insurance 4,117.78 0.0 56.9

Telecoms 1,486.48 -0.1 33.0

Consumer 7,689.73 0.9 68.5

Al Rayan Islamic 4,699.31 0.1 61.1

RSI 14 (Over Bought)

Ticker Close 1D% RSI

IHGS 198.50 1.1 99.1

MERS 239.60 2.8 88.6

BRES 51.30 -5.0 85.5

WDAM 70.50 -0.7 80.4

GWCS 64.50 0.3 78.6

RSI 14 (Over Sold)

Ticker Close 1D% RSI

QIGD 46.35 -0.7 29.7

QSE Index (30Min)

Source: Bloomberg, QNBFS Research

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ORDS

Price % Ch. Volume

Last 119.00 0.00 81,053

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 120.00 123.00 125.00

Support 118.50 116.00 108.00

Commentary

Overview: Although the telecommunications leader in Qatar showed weakness over the past two months, it is displaying signs of stability and possible strength. The price stabilized above the QR118.50 over the past couple of weeks. While the MACD is below the zero line, which reveals the possible continuity of a downtrend; the MACD Histogram is gaining momentum and showing a sign of possible rebound over the short term. The RSI is in positive divergence (the RSI graph is going upwards in the opposite direction against the stock’s price) which is considered weakness in the selling pressure and more buying is coming into play. Expected Target: QR122.70 – QR123.20 Before building a position is initiated; a break above the QR120.00 is needed for the price to push north of the downtrend line on the hourly chart to continue to its projected targets. Suggested Stop-loss: QR118.20 A close below the level signifies a continuation of the downtrend.

ORDS (Daily)

Source: Bloomberg, QNBFS Research

ORDS (Hourly)

Source: Bloomberg, QNBFS Research

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QIBK

Price % Ch. Volume

Last 111.00 2.21 182,936

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 113.00 115.00 120.00

Support 110.00 107.50 100.00

Commentary

Overview: The bank is showing stability above the QR118.50 and a bounce is possible. A bullish engulfing candle concluded the last trading session, which is a positive sign. The candle’s importance is materialized when it comes off a strong support. The support is derived from previous bottoms of the price, seen last October and August. Also, the name is rebounding off the 100SMA support level at this point. In addition, the MACD Histogram is showing positive short term momentum on the daily chart. The MACD Histogram and the RSI on the hourly chart are showing possible continuation of the move. Expected Target: QR 112.70 – QR113.00 Breach and stability above the QR111.00 price level is important in order to gain enough momentum to continue the trip north. Suggested Stop-loss: QR110.00 A break below may signify that buying pressure is losing momentum and weakness persists.

QIBK (Daily)

Source: Bloomberg, QNBFS Research

QIBK (Hourly)

Source: Bloomberg, QNBFS Research

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Intra-day 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 13,809.44 13,697.27 13,733.15 13,755.32 13,791.20 13,827.08 13,849.25 13,885.13 13,730.04 13,273.09 12,635.70

Total Return 20,596.65 20,429.34 20,482.85 20,515.92 20,569.44 20,622.95 20,656.02 20,709.54 20,478.22 19,796.22 18,704.59

All Share 3,500.83 3,474.55 3,483.00 3,488.23 3,496.68 3,505.13 3,510.36 3,518.81 3,470.45 3,357.11 3,195.69

Al Rayan Islamic 4,699.31 4,663.65 4,675.32 4,682.54 4,694.21 4,705.88 4,713.10 4,724.77 4,661.11 4,483.63 4,096.10

Banks & Financials Services

MARK 50.00 49.40 49.63 49.77 50.00 50.23 50.37 50.60 54.98 54.21 48.32

CBQK 73.50 72.70 72.97 73.13 73.40 73.67 73.83 74.10 71.37 69.05 66.85

DHBK 59.70 58.50 58.88 59.12 59.50 59.88 60.12 60.50 60.06 59.23 61.27

QIBK 111.00 106.47 107.77 108.57 109.87 111.17 111.97 113.27 115.97 107.64 94.39

QIIK 87.10 84.70 85.43 85.87 86.60 87.33 87.77 88.50 88.56 85.96 81.50

Insurance

QATI 98.00 97.53 97.80 97.97 98.23 98.50 98.67 98.93 98.45 91.44 79.90

Consumer Goods & Services

MCGS 135.00 129.93 131.54 132.53 134.13 135.74 136.73 138.33 129.47 111.71 91.13

Industrials

IQCD 199.00 193.60 195.20 196.20 197.80 199.40 200.40 202.00 189.77 183.34 183.55

QEWS 190.00 186.33 187.67 188.50 189.83 191.17 192.00 193.33 187.81 186.50 181.17

GISS 120.50 118.50 119.26 119.74 120.50 121.26 121.74 122.50 120.98 111.94 95.19

QIGD 46.35 45.52 45.88 46.10 46.47 46.83 47.05 47.42 56.91 57.11 56.10

Real Estate

BRES 51.30 49.77 50.65 51.19 52.07 52.95 53.49 54.37 41.10 40.79 37.99

UDCD 27.00 26.07 26.33 26.50 26.77 27.03 27.20 27.47 28.81 27.53 25.13

ERES 19.05 18.90 18.99 19.04 19.12 19.21 19.26 19.34 19.50 20.59 21.27

MRDS 23.00 22.67 22.86 22.98 23.17 23.36 23.48 23.67 23.99 21.43 18.54

Telecommunication

ORDS 119.00 117.80 118.33 118.67 119.20 119.73 120.07 120.60 129.14 131.94 139.07

VFQS 18.74 18.28 18.45 18.56 18.73 18.90 19.01 19.18 21.16 20.27 17.20

Transportation

QGTS 24.25 23.75 23.90 24.00 24.15 24.30 24.40 24.55 24.32 23.80 22.91

QNNS 103.80 101.40 102.13 102.57 103.30 104.03 104.47 105.20 95.55 94.35 94.18 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 [email protected] [email protected] [email protected]

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 [email protected] [email protected] 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.