Technical analysis of the QSE index
The QSE index closed down by 0.99% at 9,716.48 versus the week. This move puts the index back on the bearish path. As we mentioned last week, the index will probably test the 9,700 immediate-support level. The MACD has been moving below the zero line and curving down again and hence the bearish sentiment. The expected resistance level remains at 10,500 points and the support at 9,500 points.
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.
TECHNICAL
