The Qatar Exchange Index (QE) is now in the early stages of a bullish breakout of a descending wedge pattern as seen on the enclosed chart. This potential bullish move was first discussed in our analysis from August 9, and can be reviewed here. The breakout occurred today, Sunday, as the index rallied above the prior swing high of 11,836.8, above the top downtrend line identifying the wedge, and to a 3-week high.
An eventual target of 12,677.9 is indicated based on the wedge pattern by itself. When combined with previous support and resistance levels, a potential resistance zone from around 12,577.9 to 12,875.8 can be used.
The next target following the breakout is around 12,043.7, followed by 12,201. A rally above the lower price level confirms the strength of the wedge breakout. (www.marketstoday.net)
