Technical analysis of the QSE index
November 05 2016 08:47 PM


The index closed sharply down by 4.0% to 9,955.99 from last week’s close. Indicators turned bearish on the move but the benchmark could oscillate around the 10,000 level, which was our previous support. We update our support level to 9,750 while the resistance 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.

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