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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 Thursday, 22 January 2015 Stocks Covered Today Ticker Price Target QGTS 23.49 24.00 BRES 45.30 43.80 QSE Index Level % Ch. Vol. (mn) Last 11,849.63 -0.1 14.2 Resistance/Support Levels 1 st 2 nd 3 rd Resistance 11,850 12,000 12,250 Support 11,750 11,600 11,480 QSE Index Commentary Overview: The QSE Index as seen in the intraday chart is being squeezed inside the triangle. Although the Index is still in a range, we expect to see more selling pressure to come especially if a break below 11,850 persists. Indicators did not make any significant moves and the Index is still trading below its SMAs which is bearish on the medium-term. Expected Resistance Level: 12,000 Expected Support Level: 11,750 QSE Index (Daily) Source: Bloomberg, QNBFS Research QE Summary Market Indicators 21 Jan 15 20 Jan 15 %Ch. Value Traded (QR mn) 634.2 690.6 -8.2 Ex. Mkt. Cap. (QR bn) 645.2 647.0 -0.3 Volume (mn) 12.4 16.0 -22.5 Number of Trans. 7,223 7,555 -4.4 Companies Traded 40 42 -4.8 Market Breadth 16:21 24:15 QE Indices Market Indices Close 1D% RSI Total Return 17,673.62 -0.1 42.3 All Share Index 3,044.46 -0.1 42.8 Banks 3,108.56 -0.3 42.6 Industrials 3,751.86 0.4 38.1 Transportation 2,289.05 -0.7 49.9 Real Estate 2,272.29 -0.3 49.8 Insurance 3,736.49 -0.2 47.7 Telecoms 1,378.53 -0.7 43.8 Consumer 7,118.19 1.3 57.6 Al Rayan Islamic 4,046.22 0.2 48.3 RSI 14 (Over Bought) Ticker Close 1D% RSI RSI 14 (Over Sold) Ticker Close 1D% RSI QSE Index (30min) Source: Bloomberg, QNBFS Research

22 January Daily technical trader

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Daily Technical Trader – Qatar

Thursday, 22 January 2015

Stocks Covered Today

Ticker Price Target

QGTS 23.49 24.00

BRES 45.30 43.80

QSE Index

Level % Ch. Vol. (mn)

Last 11,849.63 -0.1 14.2

Resistance/Support

Levels 1st

2nd

3rd

Resistance 11,850 12,000 12,250

Support 11,750 11,600 11,480

QSE Index Commentary

Overview: The QSE Index as seen in the intraday chart is being squeezed inside the triangle. Although the Index is still in a range, we expect to see more selling pressure to come especially if a break below 11,850 persists. Indicators did not make any significant moves and the Index is still trading below its SMAs which is bearish on the medium-term. Expected Resistance Level: 12,000 Expected Support Level: 11,750

QSE Index (Daily)

Source: Bloomberg, QNBFS Research

QE Summary

Market Indicators 21 Jan 15 20 Jan 15 %Ch.

Value Traded (QR mn) 634.2 690.6 -8.2

Ex. Mkt. Cap. (QR bn) 645.2 647.0 -0.3

Volume (mn) 12.4 16.0 -22.5

Number of Trans. 7,223 7,555 -4.4

Companies Traded 40 42 -4.8

Market Breadth 16:21 24:15 –

QE Indices

Market Indices Close 1D% RSI

Total Return 17,673.62 -0.1 42.3

All Share Index 3,044.46 -0.1 42.8

Banks 3,108.56 -0.3 42.6

Industrials 3,751.86 0.4 38.1

Transportation 2,289.05 -0.7 49.9

Real Estate 2,272.29 -0.3 49.8

Insurance 3,736.49 -0.2 47.7

Telecoms 1,378.53 -0.7 43.8

Consumer 7,118.19 1.3 57.6

Al Rayan Islamic 4,046.22 0.2 48.3

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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QGTS

Price % Ch. Volume

Last 23.49 -0.21 984,905

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 23.75 24.00 24.30

Support 23.15 22.50 22.00

Commentary

Overview: QGTS exhibited long shadowed candlesticks over the past trading week. Those candlesticks indicate indecision on the part of traders. We see that there might be another chance for a rise that can be taken advantage of. The MACD on both time frames is in the positive territory and the RSI, although at the neutral area, is pointing upwards. Expected Target Price: QR24.00 – QR24.25 Only a break above QR23.77 will trigger the buy recommendation for a quick trade. Suggested Stop-Loss price: QR23.23

(Daily)

Source: Bloomberg, QNBFS Research

(Hourly)

Source: Bloomberg, QNBFS Research

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BRES

Price % Ch. Volume

Last 45.30 -0.77 2,003,896

Resistance/Support

Levels (QR) 1st

2nd

3rd

Resistance 46.20 50.00 54.20

Support 44.90 43.80 43.00

Commentary

Overview: The name reached a major downtrend line (denoted in red) and a break above this line may take the price to the QR50.00 price level. On the other hand, the intraday chart suggests profit taking is possible. The MACD’s Histogram is reaching the zero line and the RSI reached the overbought area and is in the correction process. Expected Price Retreat: QR43.80 – QR43.00 Only a sustained break below QR44.90 may take the price to the expected retreat.

(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 11,849.63 11,688.70 11,749.49 11,787.04 11,847.82 11,908.61 11,946.16 12,006.94 12,538.84 13,134.18 13,000.76

Total Return 17,673.62 17,433.60 17,524.26 17,580.26 17,670.92 17,761.58 17,817.58 17,908.24 18,701.57 19,589.50 19,388.38

All Share 3,044.46 3,007.82 3,021.75 3,030.35 3,044.28 3,058.21 3,066.81 3,080.74 3,199.15 3,334.56 3,301.86

Al Rayan Islamic 4,046.22 3,989.03 4,008.92 4,021.21 4,041.10 4,060.99 4,073.28 4,093.17 4,214.40 4,425.16 4,356.96

Banks & Financials Services

MARK 44.45 43.08 43.60 43.92 44.43 44.95 45.27 45.78 45.95 50.07 50.95

CBQK 66.00 64.33 65.10 65.57 66.33 67.10 67.57 68.33 69.30 70.75 69.13

DHBK 58.80 56.27 57.03 57.50 58.27 59.03 59.50 60.27 56.87 58.37 59.61

QIBK 106.80 101.47 102.99 103.94 105.47 106.99 107.94 109.47 103.14 109.04 102.45

QIIK 79.00 77.87 78.40 78.73 79.27 79.80 80.13 80.67 81.50 85.00 84.46

Insurance

QATI 83.90 82.70 83.04 83.26 83.60 83.94 84.16 84.50 88.09 93.34 87.35

Consumer Goods & Services

MCGS 122.70 122.70 122.70 122.70 122.70 122.70 122.70 122.70 121.46 124.92 108.74

Industrials

IQCD 147.30 144.57 145.48 146.05 146.97 147.88 148.45 149.37 174.91 182.87 181.95

QEWS 194.00 189.47 190.77 191.57 192.87 194.17 194.97 196.27 187.66 187.70 186.52

GISS 96.40 93.73 94.69 95.28 96.23 97.19 97.78 98.73 100.85 111.22 105.44

QIGD 38.20 36.73 37.50 37.97 38.73 39.50 39.97 40.73 41.72 48.58 54.62

Real Estate

BRES 45.30 44.03 44.61 44.96 45.53 46.11 46.46 47.03 44.88 43.23 41.48

UDCD 24.70 23.90 24.21 24.39 24.70 25.01 25.19 25.50 24.62 26.45 26.12

ERES 14.48 14.39 14.43 14.45 14.50 14.54 14.56 14.61 16.12 17.80 21.26

MRDS 20.22 19.54 19.85 20.03 20.34 20.65 20.83 21.14 20.21 22.11 20.86

Telecommunication

ORDS 115.00 109.20 111.03 112.17 114.00 115.83 116.97 118.80 117.42 123.10 131.29

VFQS 15.25 14.66 14.92 15.08 15.35 15.61 15.77 16.04 16.53 18.76 18.66

Transportation

QGTS 23.49 22.96 23.16 23.29 23.50 23.70 23.83 24.04 23.16 23.73 23.55

QNNS 95.00 92.40 93.89 94.81 96.30 97.79 98.71 100.20 97.66 96.93 95.83 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.