Technical analysis of the QSE index
The index lost 253.92 points over the week and closed at 10,467.23 (1.87% in the red). It broke and closed just below our expected weekly support level of 10,500 but it remains above the moving averages, which is slightly positive. As a result, we keep the expected support level at 10,500 as the Index may wobble around that mark; resistance is kept at the 11,500 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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