Technical analysis of the QSE index
The index closed flattish on the week and lost 54.6 points, taking it to 10,390.60 as it lost a marginal 0.52% compared to last week’s closing. The index had been flat in the past three weeks while moving around its moving averages. No particular direction can be stipulated at this point as we await stronger moves on the index and/or on the technical indicators. Support level remains at 10,300, and resistance level 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.