Technical analysis of the QSE index
The QSE index experienced an uptick this week; it gained 2.94% at 10,136.57 versus the week before. The index is getting closer to the 10,500 weekly resistance level. Even though it experienced a drop in volumes, the benchmark managed to complete a strong bullish candlestick on the weekly chart. The expected support level remains at 8,100 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.
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