The QSE index increased by almost 1% since last week’s closing. The Index is steadily marking its way above the clear long-term trend line. Traded volume is increasing gradually which is a positive confirmation to the up-move. In addition, the MACD shows that it is turning up and that indicates more positive momentum could be building up. It is worth mentioning that the Index is crawling up and still in a short-term range. Thus, the immediate resistance level is located around 12,600 on the weekly frame. On the flipside of the coin, the support level is positioned at 11,700.
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.