Technical analysis of the QSE index

Technical analysis of the QSE indexThe Index closed at 9,398.09; down 1.73% from the week before. The Doji candlestick that has been created last week had its toll on the Index and the indecision weighed in with marginal selling pressure. So far indications are mixed but we may see some correction in the foreseen future. Our first expected resistance and support levels on the weekly remains around the 10,000 and the 9,000 levels, respectively.Definitions of key terms used in technical analysisCandlestick 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.