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Qatar: watch out for the turn

Posted: 11/26/2012 - 10:27 am

On November 18, we said that the downside risk in the Qatar index (QSI) was high despite the short-term support that stood near 8400. Our view was that traders should generally avoid buying the pull-back while focusing on selling into the rebounds (read: Qatar: failed the test).

Since then, we saw the QSI move below 8400 to hit a low of 8372 before bouncing back to 8441 – effectively bringing little change to the chart and our view.

While the rebound may extend, our strategy remains focused on selling rather than buying into the bounce. This view is further reinforced by the selling pressure we saw in Saudi and other markets in region such as Egypt.

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