The QSE index fell 1.2% during the week to a level of 8,922.72. Currently, the index is experiencing a downward trend and is expected to fall further in the near future. The MACD line dipped below the signal line which indicates weakness in the index. Our support level remains at 8,670 and resistance level remains at 9,716.
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.
