Technical analysis of the QSE index

Technical analysis of the QSE indexThe QSE index closed down by 4.29 % at 9,748.78 points versus the prior week on low volumes. The index turned bearish in the medium term and the next support level is at 9,500. It is imperative for the benchmark to remain above mentioned level; otherwise, it may test the 9,000 mark. On the other hand, our expected resistance remains at 10,500 points. 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.