Technical analysis of the QSE index
The index dropped by 2% and reached our support of 9,750 but then recovered throughout the week and then closed flat at 9,960.95 (+0.05%) from last week’s close. The candlestick that has been created on the weekly chart indicates indecision and possible correction upwards. Our support remains at the 9,750 level and resistance at the 11,500 level.
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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