Technical analysis of the QSE index
The QSE index continued its correction and lost 2.68% and closed at 10,836.74 versus the week before. The bearish Harami candlestick we mentioned last week had its toll on the movement; the current correction could continue further while the main trend remains up. Our expected resistance level is situated at the 11,500 mark and the expected support level remains around the 10,500 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.