Technical analysis of the QSE index
The QSE index moved sideways this week and closed down by 1.2% at 9,847.36 versus the week before. This sideway motion created a bearish Harami candlestick formation; it is bearish but its signal is very weak. Expected support level remains at 8,100 points, and the resistance level at 10,500 points.
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.
TECHNICAL
