The QSE Index rose for the second consecutive week and gained around 1% vs the previous week. The index breached its important resistance of 10,500 and managed to close above it. However, it is imperative for the index to stay above it in order to keep its bullish momentum intact. On the flip side, any sustained weakness below 10,500 could drag the index towards 10,300. Meanwhile, both the momentum indicators are positively poised and are showing no immediate trend reversal signals. The 10,500 support level and the 11,500 resistance level remain to be the immediate levels to watch out for.
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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