QSE seen nearing key technical levels to adopt selective approach to investment opportunities

The Qatar Stock Exchange (QSE) index experienced a 2.17% decline, falling 195.44 points to 8,810 points during the week. This marks the fifth consecutive weekly loss. Analyst Mubarak al-Tamimi attributes the downturn to selling pressure, mirroring global and regional market declines, and heightened geopolitical tensions. The index remains influenced by market uncertainty, with a focus on technical levels.

The 8,764-point mark acts as a critical support level; a breach could push it to 8,664 points if the downward trend continues. The index's future trajectory will depend on holding these support levels, geopolitical developments, and global market trends. Should the index fail to maintain its support levels, a prolonged correction may ensue.

Conversely, stabilisation in trading and increased liquidity could lead to a potential rebound. Lower price levels present a technical zone to monitor, but do not confirm a sideways trend. Al-Tamimi anticipates the correction phase will likely continue, driven by geopolitical factors and market volatility. He stresses the importance of monitoring support and resistance levels, as well as bellwether stocks, rather than relying solely on price declines to identify investment opportunities.

A recovery will depend on the index's ability to hold its ground, regain buying liquidity, and see a reduction in geopolitical tensions. If key support levels are breached, the correction phase could extend further.