A bullish wedge formation is setting up in the chart of the Qatar Exchange Index (QE). Taking into account the pattern to date, a breakout is confirmed on a move above 12,043.7. However, there could be a lower signal develop as the pattern may need a little while longer to progress. At this point an aggressive signal would be given on a move above Wednesday’s high at 11,836.8.

The lower trend line indicates support of the wedge, and therefore a decisive daily close below it will indicate a potential failure of the wedge and increases the possibility for further weakness.

If a clear bullish breakout occurs then look for an initial objective at the beginning of the wedge, which is at 12,677.9. Given previous support and resistance levels, a price zone can also be used from approximately 12,577.9 to 12,875.8.

By Bruce Powers, CMT

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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