(MENAFN- Arab Times) KFH Research's previous technical analysis on Qatar Exchange (QE) Index reported that the index hit 11,665 points (as on June end) before it saw a strong reversal to the upper side. The quick reversal brought short-term investors back into the market in a very short time and they were able to buy once again in less than three weeks after liquidating, keeping the market entry level near the same exit level at 12,523 points.
At that time, the DSM Index was traded at a new record high as it reached 14,088.82 points on Sept 11, 2014. Therefore, we put short-term investors on hold with a liquidation level at 13,279 point.
Following our analysis, DSM Index continued its bullish trend and recorded a new year high at 14,350.50 points on 18 September, but soon after, profit booking stepped in taking the index lower for three consecutive weeks and down to its 76.4 percent Fibonacci retracement level at around 12,880 points on the second fortnight of October 2014.
The bearish trend could not survive as volume increased and took the index back to the positive and is currently traded at 13,901.08 points as on Nov 19.
Short-term investors in the Qatari market can continue to hold their stocks if they're still in the market as technical indicators started to turn positive. They can book their profits at levels lower than 13,565 points.
The current resistant level is at 14,000 points then at this year' high, while on the downside, the index is supported at 13,365 points, followed by 12,880 points. Below that medium and long term investors need to monitor the market and book their profits below 12,515 points and 10,625 points, respectively.
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