Technical analysis of the QSE index
The index moved slightly higher by 0.7% compared to the week before; it remained above our previously expected weekly resistance level of 9,000, which is a positive position. The index closed at 9,200.10 for the week and the general direction, in the short term, remains up. The current support level is 8,000 points and the resistance at 10,000.
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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