The consecutive upward trend of the Qatar Exchange (QE) index has returned to the market strength and luster where it has recently surpassed the 10000 points, a Kuwait Finance House (KFH) report showed.
The upward long term trend for this year that began in April, brought back gains of over 20 percent for the Qatari market within six months and a half, it said.
The market index in September was quick enough to reverse its bearish trend that it took in August due to heavy selling and rose back to above its 76.4 percent level and above its short-term moving average on September 10th. From there and based on the positive technical indicators at that time, it was expected that additional rise to the year high around 10,000 point could be addressed again within the coming short to medium term, it said.
As expected the index sustained its bullish trend and was seen up for the last three weeks, breaking its recent high and securing itself at its highest level since September 2008. This year's long-term bullish trend which started in April brought back gains of over 20 percent to QE index in six and a half months. QE closed the week at a new year high at 10,212 point, it added.
Technical indicators are still looking positive. Relative strength index (RSI) indicator is traded below its upper line, while trading volume is at high figure, it indicated, Should the bullish trend continue, investors would be expecting to see higher levels toward the next resistance in the medium term. However, a retreat would give a liquidation signal for short-term investor at levels lower than 9,758 points, while medium term and long term investors can continue to hold their stocks as long as the index continues to trade above 9, 263 points and 8,742 points, respectively.