Technical analysis of the QSE index

Technical analysis of the QSE indexThe Index closed down by 1.65% from the week before and now at 9,242.82. Weakness was expected but the good news is that the weakness came with lower traded volumes, which is a good sign. Our first expected resistance is located around the 10,000 mark and the support levels around the 9,000 area.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.