After a 3.6% drop through the week, the Qatar Index managed to reduce its losses to only 1.15% versus the week before and it closed at the 10,412.50 level. That created a possible reversing candlestick upward. The index needs to break above the 10,630 mark to possibly continue its path upwards inside the uptrend channel. We update the expected support to the 10,000 level and our resistance level is remains at the 11,500 level.
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.