Technical analysis of the QSE index
The QSE Index was inactive for the most part of the week and traded in a thin range with low volumes. It ended the week at 12,445.34, losing 0.41% from the previous week’s close. The Bearish Engulfing candlestick created the previous week had a marginal bearish effect on last week’s performance. Yet, it could extend its impact in the coming week. Technical indicators remain flat. However, the 21SMA crossed below the 55SMA, which could have a bearish effect in the foreseeable future. We expect the next resistance level at the 12,800 level while the support level is positioned at the 12,000 level.

Definitions of key terms used in technical analysis
Candlestick chart – A candlestick chart is a price chart that displays the high, low, open, and close for a security. The ‘body’ of the chart is portion between the open and close price, while the high and low intraday movements form the ‘shadow’. The candlestick may represent any time frame. We use a one-day candlestick chart (every candlestick represents one trading day) in our analysis.
Doji candlestick pattern – A Doji candlestick is formed when a security’s open and close are practically equal. The pattern indicates indecisiveness, and based on preceding price actions and future confirmation, may indicate a bullish or bearish trend reversal.

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