QE Banks and Financial Services Index (QBNK) - Technical Analysis
- After reaching an all-time high close to the 6,800 mark, the bank index encountered resistance and subsequently experienced a significant decline.
- It found support around the 3,800 level and remained consolidated above this point for a considerable duration.
- This consolidation phase eventually led to the formation of a rectangle pattern.
- In the past week, the bank index successfully broke out of this rectangle pattern.
- If the index maintains its position above the 4,600 level, we can expect further upward movement in the coming days.
While the current outlook for the bank index appears favourable, several banking stocks exhibit promising potential for upside.
Qatar National Bank QPSC (QNBK)
- The stock price reached an all-time high of 27 but encountered significant resistance at that point. This caused the price to drop sharply to the 12.8 level, where it found support.
- After rebounding from this support area, the stock is now trading just under its next resistance level at 17.2.
- If a weekly candle closes above this resistance, it could indicate that the stock is ready for a potential upward movement.
Doha Bank QPSC (DHBK)
- The stock had been on a prolonged downward trajectory for an extended period of time.
- Eventually, it discovered support around the 1.35 mark and is now attempting to overcome the nearby resistance at 1.85.
- A weekly candle closing above this resistance could indicate that the stock is ready for a potential upward movement.
