Technical analysis of the QE index

09/02/2014 08:26 AST

The QE Index ended on a bullish note last week, surpassing the important resistance near the 11,170.0 level. Starting the week on a positive note, the index caved in under selling pressure on Monday and Tuesday, pulling it down below the supports of 11,100.0, 21-day moving average and the 11,000.0 levels. However, the index rebounded from its weekly low of 10,975.62 and registered an impressive rally during the middle of the week reclaiming all the above levels. The price action on Wednesday and Thursday was largely responsible for the gains over the week. Meanwhile, the index has successfully managed to defend the 11,000.0 psychological level on many occasions, thus providing a strong support area. Hence, until the time the index does not close below the 11,000.0 level, bulls need not worry. We believe this range-bound movement is healthy for the index over the long-term. Some rest is required before the index resumes the next leg of its rally. Further, the index may advance toward the 11,200.0-11,300.0-350.0 levels only if it clings onto the support near the 11,170.0 level. On the other hand, any dip below this level may drag the index to test the 21-day moving average followed by 11,060.0. Meanwhile, both the momentum indicators are providing mixed signals. Thus, we expect a mixed week with high volatility. Investors are advised to exercise caution and make good use of the stop losses.

Gulf Times
Market News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 146 383,603
WAHA 1.72 489,438
DAMAC 2.88 5,023,218
BATELCO 0.26 25,000
BKIZ 0.08 62,350
SABIC 98.2 2,769,289
BKDB 0.23
Recent News

OPEC says it will extend production cuts through March 2018
The Organization of the Petroleum Exporting Countries on Thursday renewed an agreement to withhold some crude-oil supplies into March 2018, people familiar with the matter said, doubling down on its

OPEC meets to extend oil cuts for up to one year
OPEC and non-member oil producers are gearing up to extend output cuts on Thursday, possibly by as long as 12 months, to help clear a global stocks overhang and prop up crude prices.

The O

U.K. Economy Weakens More Than Estimated, Growth Drops to 0.2%
The U.K. economy slowed more sharply than initially estimated in the first quarter as shoppers flagged and trade dragged on growth.

Gross domestic product rose 0.2 percent, less than the 0

OPEC Set to Prolong Cuts as Effort to Clear Oil Glut Goes Slow
OPEC and its allies were poised to extend their production cuts for another nine months after last year’s agreement failed to clear a global supply glut or deliver a sustainable price recovery.

Oman share index falls on regional cues
Oman’s benchmark, MSM30 Index, followed regional cues and ended on a weaker note at 5,392.31 points, down 0.17 per cent. The MSM Sharia Index closed at 789.80 points, up 0.06 per cent. Al Madina Inve

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend


Looking ahead, what change you are more likely to make in investing in your domestic stock market?