Technical analysis of the QSE index

The QSE Index gained more ground bouncing off the long-term uptrend line and rose 2.47% (closed at 11,987.71) from the week before. This bounce is bringing more confidence to the general market sentiment, but it is missing higher traded volumes which puts a question mark on how the market will perform next week. Technical indicators suggest that the market might extend its gains in the coming week giving the strong bullish candlestick created and the MACD crossing its signal line on the weekly chart. We expect to see heavy resistance around and above the 12,000 level while the major support level is positioned around the 11,500 level.Definitions of key terms used in technical analysisCandlestick 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.