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Technical Review of Stocks Update –– 29 June 2015 CIO Wealth Management Research Peter Lee, Chief Technical Analyst, [email protected], +1-212-713-8888, ext.01

This report provides technical analysis on stocks that, we believe, are of a wide interest. This list is not a template forthe construction of your personal portfolio. You should discuss investment decisions with your Financial Advisor. For more information about this report, see Description and Methodology in the Appendix. We would like to thank Venkat Badri, an employee of Cognizant Group, for his assistance in preparing this research report. Cognizant staff provides research support services to UBS.

This report has been prepared by UBS Financial Services Inc. (UBS FS). Analyst certification and required disclosuresbegin on page 27. UBS does and seeks to do business with companies covered in its research reports. As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment decision.

Table of Contents Ticker Name PageAAPL APPLE 4ABBV ABBVIE INC 4ABT ABBOTT LABORATORIES 5ACN ACCENTURE 5AGN ALLERGAN 6ADSK AUTODESK 6AET AETNA INC 7AMAT APPLIED MATERIALS INC 7AMP AMERIPRISE FINANCIAL INC 8 APC ANADARKO PETROLEUM CORP 8BA BOEING 9CL COLGATE-PALMOLIVE CO 9CMCSA COMCAST CORP 10CSCO CISCO SYSTEMS INC 10CVS CVS CAREMARK CORP 11DOW DOW CHEMICAL 11EMC EMC CORP/MA 12GE GENERAL ELECTRIC CO 12GOOGL GOOGLE INC 13HLT HILTON WORLDWIDE 13INTC INTEL CORP 14IVZ INVESCO 14JPM JPMORGAN CHASE & CO 15KRFT KRAFT FOODS GROUP INC 15LRCX LAM RESEARCH CORP 16MCK MCKESSON 16MDLZ MONDELEZ INTERNATIONAL INC 17MDT MEDTRONIC INC 17MET METLIFE 18MRK MERCK & CO 18MSFT MICROSOFT INC 19NKE NIKE INC 19QCOM QUALCOMM INC 20SLB SCHLUMBERGER LTD 20SNDK SANDISK CORP 21SO SOUTHERN CO 21TXN TEXAS INSTRUMENTS INC 22UNP UNION PACIFIC CORP 22UTX UNITED TECHNOLOGIES CORP 23VMW VMWARE INC 23

Technical Review of Stocks

UBS CIO WM Research 29 June 2015 2

Changes since last report Deletions Name Ticker DELPHI AUTOMATIVE DLPH

Technical Rating Changes Name Ticker Old New JPMorgan Chase JPM Neutral Bullish

The last update on these stocks was published on 31 May 2015. Going forward, our previously published rating for these stocks should not be relied upon.



Apple Inc (AAPL)

2011 2012 2013 2014 20152020

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Price 10-Week Moving Average 30-Week Moving Average

Source: FactSet, UBS CIO WMR as of 25 June 2015 Support levels Resistance levels

First Second Third First Second Third 121.5-124 112.48-115.31 100.72-100.49 133-135 145-148 164-166.5

Technical rating Bullish Sector Technology

Last Sale Price $127.50

Rationale: AAPL has achieved a near-term target of 134.5-135 coinciding with the Feb/May '15 highs and the top ofthe 2014 uptrend channel. Although higher prices to 145-148 (medium) and then to 164-166.5 (longer-term) are still possible the 145% rally from its 2013 low (55.01) has created a moderately overbought condition. Failure to clear the top of its 1-year uptrend channel (mid-130s) coupled with two negative outside weeks (2/27/15 and 5/1/15) has led to a consolidation between 121.5-124 (Mar/May '15 lows and the 30-wk ma) and 133-135 (Feb/Mar/May '15 highs).

AbbVie Inc (ABBV)

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First Second Third First Second Third 66-67.75 62-63.5 58-60 70.76 75-77 85-87

Technical rating Bullish Sector Healthcare


Rationale: A breakout above 61-62, the top of its 2013 uptrend channel during Oct '14 suggests higher prices. Since the height of this channel is 10-points this renders upside targets to the low-70 (near-term), 75-77 (intermediate term) and 85-87 (longer term). Recent move above 66-67 in Jun '15 hints of the next sustainable rally to the Dec '14 all-time high of 70.76. A weekly golden cross technical buy signal and a subsequent positive outside week on 6/19/15 reaf-firms the next rally. Initial support moves up to 66-66.75 or Jun '15 low and 10-wk ma and then 62-63.5 or 30-wk ma.



Abbott Laboratories (ABT)

2011 2012 2013 2014 2015

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First Second Third First Second Third 48-48.5 45.5-46.5 41-43 49-49.5 52-53 57-59

Technical rating Bullish Sector Health Care


Rationale: For the past 4-plus years this Healthcare name has retained its bullish uptrend channel now rising near 41and 49-49.5, respectively. Since 2011 a smaller but equally important uptrend channel is also visible between 43 and 48. The ability to maintain its 10-wk/30-wk ma (48.5/47) may set the stage for the next breakout. A positive outside week breakout above 49-49.50 during the week of 6/19/15 renders next upside targets to 52-53 (near-term) and then to 57-59 (intermediate-term). Key supports are: 47-47.5 (near-term), 45.5-46.5 (medium) and then 41-43 (long-term).

Accenture PLC (ACN)

2011 2012 2013 2014 2015

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First Second Third First Second Third 94.25-96 90-92.13 83.50-84.50 99-101 103-105 110-112



Rationale: An uptrend channel over the past 5-plus years and a recent breakout above a 2-year ascending triangle in the high-80s confirm an outperformance cycle. A positive outside week on 12/19/14 and Feb '15 positive outsidemonth reaffirms our technical bullish outlook. Based on the favorable technical developments we maintain technical targets to 99-101 (short-term), 103-105 (medium), 110-112 (intermediate) and 119-121 (longer-term). Initial support is 94.25-96 (Jun '15 lows, Mar '15 breakout, 10-wk ma, and Oct '14 uptrend) and then the low-90s (30-wk ma).



Allergan (AGN)

2011 2012 2013 2014 2015

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First Second Third First Second Third 290-295 275-280 252-262 317-318 330-333 345-350



Rationale: We retain our bullish outlook on this Healthcare name due to its 2012 uptrend channel and its relative strength. However, the sharp rally over the past year or so has created a near-term overbought condition as it nears the top of its uptrend channel (317.72). A flat 10-wk ma may signals a consolidation period is likely over the near-term before the resumption of the primary uptrend. Trading above 305-307 can lead to a retest of its all-time high of 317.72 (3/20/15). Above this renders next targets to 330-333/345-350. Initial support is at 290-295 or near 30-wk ma.

Autodesk (ADSK)

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First Second Third First Second Third 51-52 48.38 44.5-45.5 56-58.5/63-65 69-71 81-82



Rationale: Near-term weakness is noted over the past few months as ADSK has failed to follow through on its 1-plus year ascending triangle breakout above 56.68. Nonetheless, we remain optimistic on this Technology name as long asit retains its larger technical breakout of a four-year symmetrical triangle pattern in late-2013/early-2014 (above 42.5/51.18). The above technical breakouts renders upside targets to 63-65 (near-term), 69-71 (medium-term), 81-82 (intermediate-term) and 90-91 (longer-term). Key initial support resides near the low-50s or the prior breakout levels.



Aetna Inc (AET)

2011 2012 2013 2014 2015

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First Second Third First Second Third 120-124 110-115 103-105/93.5 135-137 142-145 150-152



Rationale: Trading above the top of a 17-plus year internal trend line in the high-70s during 2014 (not shown) hasquickly achieved our near-to-medium term technical targets at 110-111 and 116-117, respectively. It has also sur-passed its intermediate term targets at 121-123 and above this to 135-137/142-145. Although higher prices are possi-ble over time, the sharp rally over the past 7 months has created an overbought condition. Initial support now rises to 120-124 or the May '15 breakout and secondary support to 110-115 or the 10-wk ma and the Oct 2014 uptrend.

Applied Materials Inc (AMAT)

2011 2012 2013 2014 201588

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First Second Third First Second Third 18.63-19.69 16.93-17.83 15.97-16.41 20.60-20.85 21.75-23.5 25.64-25.71

Technical rating Neutral Sector Technology


Rationale: Failure to clear above key resistance near the 38.2% retracement from 2000-2008 (26.40) and Nov 2003 highs have led to the recent 25.25% correction. In the process a number key supports including the 10-/30- wk ma (20/22.5) and the 2013 uptrend near the 22-22.5 have been breached. The Mar '15 negative outside month, a large gap down in early May '15 and a 1-year shoulders top pattern warn of distribution/selling. Violation of support at 18.63-19.69 (Oct '14/May '15 lows and the 38.2% retracement from 2012-2014 rally renders downside to 16.93-17.83/15.97-16.41.



Ameriprise Financial Inc (AMP)

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First Second Third First Second Third 120.83-121.49 115.41-116.02 105.41-101.29 130.69-131.76 137-138.26 143-145

Technical rating Bullish Sector Financials


Rationale: A breakout in Jan ‘13 above 63 and a subsequent 6-year symmetrical triangle breakout still renders upside targets to 143-145 (intermediate term). However, recent failure to clear above the top of its 2009 uptrend channel(138.26) and a negative outside week on 12/12/14 warns of a maturing rally. The ability to find support near its Oct '14 gap up (120.47-121.57) and a positive outside week on 1/23/15 prevented a deeper setback. Nonetheless, a nega-tive outside week on 3/27/15 and weekly death cross sell hints of a near-term trading range between 121 and 132.

Anadarko Petroleum Corp (APC)

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First Second Third First Second Third 77-78 71-73.60 71-73.6/65-66 86-87/90-91 96-97/103-105 112-113.5

Technical rating Neutral Sector Energy


Rationale: Despite the 35% rally from Dec '14 low (71) we remain defensive on the Energy sector and hence our neu-tral technical stance on this energy leadership name. The ability to surge above the pivotal 2010 uptrend breakdown near the mid-to-high 80s has led to a technical rally to the mid-90s coinciding with the Nov '14 highs (95.93-95.98) as well as the 61.8% retracement (97.27) from the Aug-Dec '14 decline. Failure to breakout coupled with a negative out-side day/week on 5/5/15 suggests another retest of key initial support at 77-78 or near the Mar '15 lows.



Boeing (BA)

2011 2012 2013 2014 2015

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First Second Third First Second Third 138.5-141.5 130-134 116-120.5 146.5-150.5 156-158.83 185-190

Technical rating Bullish Sector Industrials


Rationale: A breakout of a multi-year technical accumulation pattern above 107.83 in 2013 still suggests higher pricesare possible, over time. A 79-point technical base breakout renders longer-term technical targets to 185-190. However, on a near-to-medium term basis, the Nov '14 to Feb '15 rally has met its target of 159-160 prompting the recent con-solidation. The Jan '15 breakout (138.5) and the 10-/30- wk ma (144/142) provide key near term support. Additional pivotal secondary support is at 130-134 or the Nov '14 breakout and then along the 2014 lows at 116-120.5.

Colgate Palmolive Co (CL)

2011 2012 2013 2014 2015

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First Second Third First Second Third 64.83-64.87 62.53-62.89 58.5-59.75/55 67.5-68.5 70.5-71.56 75-76/79-81

Technical rating Bullish Sector Cons. Staples


Rationale: Defensive and income stocks have underperformed the broad market this year – many have weakened due to the strong surge in the US Dollar while others have slowed due to the recent rise global interest rates. This leader-ship Consumer Staples stock has also succumbed to selling pressure as it has violated the bottom of its 2011 uptrend channel near 64-65. Despite a bullish longer term trend, negative divergences between the price chart and the relative strength and MACD charts warn of a correction. Violation of the low-to-mid 60s confirms an intermediate term top.



Comcast Corp. Cl A (CMCSA)

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First Second Third First Second Third 55.5-56.5 51.56-52.45 47.74-49.33 65-66 69-70 89-91

Technical rating Bullish Sector Cons. Disc.


Rationale: There remain wide dispersions within the Consumer Discretionary sector creating opportunities as well as risks. The media/cable/entertainment sub sector continues to be stellar outperformers. CMCSA has also broken out of two major accumulation patterns (not shown) during 2012/13 above 30.54/50. These breakouts render upside targetsto 49-50 (achieved), 60-61 (achieved), 65-66 (medium), 69-70 (intermediate) and 89-91 (long-term). Two recent nega-tive outside weeks (1/2/15 and 3/13/15) has led to a successful test of key support at 55.5-56.5 prompting next rally.

Cisco Systems Inc (CSCO)

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Price 10-Week Moving Average 30-Week Moving AverageSource: FactSet, UBS CIO WMR as of 25 June 2015

Support levels Resistance levels

First Second Third First Second Third 26-27 24.5-25 22.5-23.5 30-31 34.24/36.34 38/45.06



Rationale: A rare Fan formation breakout via 3 downtrends during late-2011, early-2013 and recently in mid-2013 is technically significant as this confirms a major trend reversal favoring a sustainable intermediate term recovery. This ren-ders upside targets to 30-31(near-term) or the Mar '15 highs, 34.24 (medium) or 2007 high, and 36.34-38 (intermediate) or the 38.2% retracement from 2000-2002 decline and recent triangle breakout target. Two recent negative outside weeks (3/6/15 and 3/27/15) hint of a near-term consolidation between 26-27 (recent breakout) and 30-31 (2015 highs).



CVS Caremark Corp. (CVS)

2011 2012 2013 2014 2015

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First Second Third First Second Third 100.5-102.5 98-99/92-93.68 88-90/83-85 112-113 120-121 130-133.5



Rationale: A large channel breakout during late-2012/early-2013 led to a steeper 2-year uptrend channel. In the pro-cess, a positive outside month (Oct '14), positive outside weeks (11/7/14 and 12/19/14), a breakout above the top of2012 channel at 88-89, gap up (1/8/15) and a positive outside day on 2/10/15 have propelled the stock higher. Recentbreakout above 105 renders next upside targets to 112-113, 120-121 and then 130-130.5. Initial support moves up to 100.5-102.5 or the 10-/30- wk ma and the top of the 2013 channel. Secondary support is at 98-99 (May/Jun '15 lows).

Dow Chemical Co. (DOW)

2011 2012 2013 2014 2015

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First Second Third First Second Third 49-50 45.93-46.56 41.5-43 54.97-56.75 63-65/69-70 79-81

Technical rating Bullish Sector Materials


Rationale: Despite a lackluster performance over the past year, we retain a bullish technical view on DOW as a breakout above the top of an ascending triangle pattern in 2013 at 36-37 (shown above) suggests higher prices. This breakout coupled with a subsequent breakout above the 2008/2011 highs at 42.23-43.43 (also shown above) reaf-firms a bullish outlook and renders upside to 54.97-56.75 (2005/2014 highs) and above this to the mid-to-high 60s. On a near-term basis, a trading range is likely between low-to-mid 40s and mid-40 or the 2014 and 2015 lows/highs.



EMC Corp (EMC)

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First Second Third First Second Third 24-25 23-23.50 21.45-21.51 27.56-28.26 29.24-30.92 32.5-33



Rationale: A large gap up breakout during Jul '14 hints of a sustainable intermediate term recovery. However, it may be have been a false breakout as EMC failed to clear above the top of its 2013 uptrend channel near 31. A subsequentweekly death cross sell signal has led to the Jan-Mar '15 correction (-18.8%) as EMC has fallen back down to the bot-tom of its 2013 uptrend channel. A small 1-plus year head/shoulders top pattern hint of further volatility. Key neckline support is near 24-25. A surge above 28.26-29.24 negates the left/right shoulders allowing for a retest of the low-30s.

General Electric Co (GE)

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First Second Third First Second Third 25.83-26.5 24-24.5 23.41-23.69 28.09-28.68 30.5-31 33-33.5

Technical rating Neutral Sector Industrials


Rationale: The 2000 downtrend breakout above 26.5 during Nov ‘13 (not shown) and a large gap up during 4/10/15 (25.83-27) are technically significant as this confirms a longer-term trend reversal. Upside technical targets are as fol-lows: 28.19-28.68 (near-term), 30.5-31 (medium-term), 33-33.5 (intermediate-term) and then 42.08 (long-term). However, on a near-to-intermediate term basis an overbought condition suggests a trading range between 25.83 (bot-tom of the Apr '15 gap up) and 28.68 (Apr '15 highs). Above 28.68 confirms the next sustainable rally the low-30s.



Google Inc (GOOGL)

2011 2012 2013 2014 2015

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First Second Third First Second Third 529-532 511-518 480-495/467 585-595 605-615 635-640/705



Rationale: After rallying 121% to a record high of 615.04 (Feb ’14) GOOGL has transitioned into an extended consol-idation phase via a 1-plus year downtrend channel between 480-495 and 585-595.This consolidation helps to alleviatean overbought condition and allows for the resumption of the longer-term primary uptrend. A breakout above 585-595 renders a retest of 605-615 (Feb/Sep '14 highs). Breakout here can extend the rally to 635-640 and then to 705, longer-term. Key initial supports are: 529-532 (Apr/May '15 lows) and 511-518 (May/Oct '14 lows and Jan '15 gap up).

Hilton Worldwide (HLT)

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First Second Third First Second Third 27.5-27.62 25-26 24.36 31.34-31.60 33.40 35

Technical rating Bullish Sector Consumer Disc.


Rationale: Although there is limited data available, the breakout above a 1-year accumulation pattern above 26 during late 2014 and early 2015 suggests upside technical targets to 31-32, medium term and 33-35, longer term. Recent failure to clear above its Apr/May '15 highs (31.34-31.60) coupled with a negative outside week (5/1/15) and violation of the Oct '14 uptrend warn of a correction to 27.5-27.62 or the 38.2% retracement from Oct '14 to May '15 rally and the Mar/Jun '15 lows. Secondary support is at 25-26 or the Jan/Feb '15 breakout and the 50-61.8% retracement.



Intel Corp (INTC)

2011 2012 2013 2014 2015

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First Second Third First Second Third 30.94 29.31-29.65 28.42 34.72-35.57 37.5-38.0 43-44



Rationale: INTC has finally caught up to its peers with a key breakout above multi-year resistance along 29-29.5 dur-ing Jun '14. This breakout confirms a 2005 head/shoulders bottom pattern and renders upside to mid-to-high 40s (longer term). However, on a near-term basis, a large gap down in Jan '15 and a 1 year head/shoulder pattern (shown in the circle above) hint of a correction. Nonetheless, we retain a favorable outlook due to the positive outside weekson 5/29/15 and 06/19/15 as well as the ability to maintain above its key support at 29/31-29.65 (Oct '14/Mar '15 lows).

Invesco (IVZ)

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First Second Third First Second Third 37.44 34.40-35.52 31.73 42.05 44-44.50 47



Rationale: We maintain a technical bullish view on IVZ as long as the bullish trend starting from 2008/2009 lows re-main intact. A move above 32.25 or the 2007 highs in early 2013 not only recovered all of its losses during the sub-prime crisis, but also completed a multi-year technical base breakout. A retest of its all-time highs in the low-60s is still possible, long-term. However, the stock is consolidating its recent gains as evident by the flattening of its key moving averages and the Dec '14 negative outside month pattern. Initial support now lies at 37.44 or near the Feb '15 gap up.



JPMorgan Chase & Co (JPM)

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First Second Third First Second Third 65.5-67.5 62-63.5 53-54 70-73.5 83-85 91-93/117-119



Rationale: We recommend upgrading JPM to a Bullish technical outlook based on the following technical develop-ments: (1) recent breakout above its Mar '00 high of 67.17 confirms a new all-time high and suggests longer-term technical targets to as high as 117-119, longer-term; (2) the Jan '13 breakout above the mid-40s validates a symmet-rical triangle pattern rendering upside 83-85; and (3) a subsequent breakout during Jun '13 above 53 further reaffirms a sustainable intermediate term rally and hence the technical upgrade. Key initial supports are 65.5-67.5 and 62-63.5.

Kraft Foods Group (KRFT)

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First Second Third First Second Third 80-83 74/68 60-62.33 91.32 95 100

Technical rating Neutral Sector Cons. Staples


Rationale: We have limited history as this Consumer Staples name as it has only been trading since Sep 2012. None-theless, the dominant trend remains bullish. On 3/25/15 the stock surged by over 35% after Heinz and Kraft Foodsannounced a merger to form the Kraft Heinz company thus creating the fifth largest food and beverage company in the world. Although we would not recommend investors chase the stock at current levels we also believe a potential Jun '15 positive outside month and a large flat/pennant pattern support higher prices. Initial support is the low-80s.



Lam Research Corp (LRCX)

2011 2012 2013 2014 2015

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First Second Third First Second Third 74-76 70-71/65-66 57-60 85.70-87 94-96 100-102



Rationale: We remain bullish on LRCX primarily due to its breakout above a large basing pattern dating back to 2000.A positive outside month on Apr ‘13, an upside gap breakout in Apr/Jul ’13 and favorable relative strengths against SPX helped this stock complete a 28-point basing pattern (shown above). The breakout (above 60) suggests targetsinto the mid-to-high 80s which was recently achieved during Dec '14/Feb/Mar '15 timeframe. We believe the current consolidation is constructive and the 06/19/15 positive outside week pattern sets the stage for the next breakout.

McKesson (MCK)

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First Second Third First Second Third 220-225 205-210 183-190 243.61 255-257 265-267



Rationale: We retain a bullish technical stance on MCK based on the favorable primary uptrend from the 2000 lows. In addition, a breakout of a 14-year accumulation pattern above 96.25 (1998 highs) in late-2012 suggests higher pric-es. This breakout has led to the current 2-plus year uptrend channel. Rising key moving averages, relative outperfor-mance versus S&P 500 and the recent 1/23/15 and 2/6/15 positive outside week patterns further substantiates our pos-itive views. Nonetheless, we would not surprise to see a pullback to 210-225 or the 30-wk ma and the 2013 uptrend.



Mondelez International Inc (MDLZ)

2011 2012 2013 2014 2015

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First Second Third First Second Third 39-40 36.5-37.5 33-34 44-45 47-49 54



Rationale: A key breakout during Mar ‘13 above an 11-year technical base (not shown) supports our longer-term bull-ish outlook. The 19.5% correction during Jul-Oct '14 and the ensuing technical basing efforts hint of the next major rally. The mid-May '15 breakout above 39.25-39.5 renders next upside targets to 44-45 or the top of its 203 uptrend and then 47-49. Key initial support moves up to 38-40 or the prior breakout and the 10-wk/30-wk ma. Secondary sup-port is also evident near the mid-30s coinciding with the Oct '14 uptrend, 30-mo ma and the Mar '15 lows.

Medtronic Inc. (MDT)

2011 2012 2013 2014 2015

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First Second Third First Second Third 70-71 60 +/- 1 55 +/- 1 79.50-82 87-87.50 95-96

Technical rating Bullish Sector HealthCare


Rationale: We retain a bullish technical view based on MDT's favorable uptrend and superior relative strength soon after its successful acquisition of Covidien. This Healthcare name has confirmed a major breakout above its 2000/2006 highs at 60-62 in Jan/Apr ‘14. In addition, the negation of the Apr '14 negative outside month as well as positive out-side months on Aug '14, Oct '14 and May '15, relative outperformance of the stock versus S&P 500 Index favor higher prices over the intermediate-to-longer term basis. Initial support lies at 70-71 or near the Dec '14/Jan-Feb '15 lows.



MetLife (MET)

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First Second Third First Second Third 52 +/- 2 45.52-46.10 40.64 64.50 +/- 1 71-72 78-79

Technical rating Neutral Sector Financials


Rationale: Although the longer-term trend from the 2009 lows still remains favorable, the stock has become increas-ingly volatile over the near-to-intermediate term. This is depicted by a choppy trading range trend between the mid-40s and the high-50s over the past one-plus years as well as a rising wedge breakdown. The Dec '14 negative outsidemonth pattern and a breakdown below 2012-13 up trend has triggered a sell-off in Oct '14 and again in Jan '15. Thatsaid, an impressive rally (+24%) from Jan '15 lows prevented further selling. Initial support is 52 +/- 2 (10-/30- wk ma).

Merck & Co (MRK)

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First Second Third First Second Third 55.64 52.49 47.61 63.62 66-68 71-72



Rationale: In 2013, this Pharmaceutical name broke out of a major 2000/2007 downtrend (not shown) along the low-40s. This action confirms the start of an intermediate term recovery. However, MRK has encountered major resistance near the low-to-mid 60s or the 2007/08 highs and 2014/15 highs. The ability to clear above key resistance in the mid-60s can entice traders/investors to return. On the other hand, violation of key support in the mid-50s or the 2011 up-trend can trigger the next major correction. The Jun '15 negative outside month also warns of further consolidation.



Microsoft Inc. (MSFT)

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First Second Third First Second Third 43.61-45.65 40-40.50 37-38 49.54-50.05 54.50-55 59.97



Rationale: A breakout of a large 13-plus year Head and Shoulders bottom pattern above key neckline resistance at 37-38 (in 2013) drives our technical bullish outlook on MSFT. The 21-points technical base suggests upside targets to as high as 59-60, longer term. However after establish a high of 50.05 in Nov '14 the stock has corrected 20% throughMar/Apr '15. A large gap down on 1/27/15 and 3/27/15 negative outside week pattern kept investors nervous. Howev-er, a large gap up on 04/24/15 and the Apr '15 positive outside month allowed the bulls to retain control of the stock.

Nike Inc. Cl B (NKE)

2011 2012 2013 2014 20153030

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First Second Third First Second Third 100 +/- 2 95.18 90.69 110 +/- 2 116-116.50 122-122.50

Technical rating Bullish Sector C. Discretionary


Rationale: We retain a technical bullish view on NKE based on following: breakout above its 2009 uptrend channel, positive outside month during Feb '14 and Aug '14, a gap up on 9/26/14, a large positive outside week during Sep '14 and favorable relative outperformance against SPX. However an overbought condition may arise near 110 or near the top of its 2013 uptrend. An overbought condition may leads to a consolidation to the 10-wk/30-wk ma at 99/104. The positive outside week on 6/12/15 hints of another rally .Support is 100 +/- 2 or the 2012 uptrend and 10-/30-wk ma.



Qualcomm Inc (QCOM)

2011 2012 2013 2014 2015

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First Second Third First Second Third 60-62.26 53.09 49-50 70-72 74.09 78.53



Rationale: QCOM has become increasingly volatile as evident by the following mixed technical signals: a gap down on7/24/14 soon led to a negative outside month pattern by July ’14. On the other hand, a positive outside month on Oct '14 hint of a recovery. However, another gap down on 11/6/14 led to the Nov '14 negative outside month. On 12/19/14 a positive outside week offers the bulls hope for a recovery but another large gap down on 1/29/15 and 3/13/15 negative outside week warns of renewed selling. A retest of the 2013/205 lows near 60-62.26 is now likely.

Schlumberger Ltd (SLB)

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First Second Third First Second Third 79.39 75.60 66.85-69 95-97 100.5-102 118.76

Technical rating Neutral Sector Energy


Rationale: A 5-year triangle pattern breakout (mid-90s) led to the Jul '14 highs at 118.76. However, this may have been a false breakout or a bull trap as SLB and energy stocks quickly reversed directions. The ensuing 36.34% declinefrom its Jul '14 highs has weakened the intermediate term trend. Nonetheless, an oversold condition coupled with a breakout above 88-89 has triggered a technical rally. This oversold rally is now facing formidable resistance in the mid-90s coinciding with a prior major breakout and the 50% retracement from 2014 to 2015 decline.



SanDisk Corp (SNDK)

2011 2012 2013 2014 2015

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First Second Third First Second Third 58.50-59 52 +/- 2 45-47 71-72.50 78-80 87.43



Rationale: Gap down on 01/12/15 and again on 3/26/15 weakened both the absolute and relative charts at least froma near-to-intermediate term basis. A lower-low pattern on the price charts, a death cross sell signal and a negative out-side month on Mar '15 coupled with continued relative weakness of this stock to SPX paints a cautious picture andhence our neutral outlook. Next major support is the crucial 61.8% retracement (60.72) from 2012-2014 rally and be-low this the pivotal 2008/2009 uptrend at 53-54 (not shown). Key initial resistance is at the low-70s and then 78-81.

Southern Co. (SO)

2011 2012 2013 2014 2015

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First Second Third First Second Third 40 35.73 32 43.5-44 45.44-47.05 52 +/- 1

Technical rating Neutral Sector Utilities


Rationale: A breakdown below 2009 uptrend line (in mid-2013) and the longer-term relative underperformance of the stock to SPX substantiates our neutral technical outlook. Although positive outside week patterns on 11/28/14 and12/19/14 hint of a potential bottom, the failure to surpass the extension of the 2009 uptrend in the low-50s may lead to solidify a head/shoulders top. In the near-term, 6/19/15 positive outside week pattern may help to stabilize the sell-ing. Key support remains 40 or the Dec 2013 low and 2011 breakout. Key initial resistances are 43/46 or 10/30-wk ma.



Texas Instruments Incorporated (TXN)

2011 2012 2013 2014 20152020

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First Second Third First Second Third 52/49.5 44.50-45 40-41.50 56-58/60-61 65-67 70-72



Rationale: A surge above 39.63 in 2013 above its 2007 highs and neckline resistance of a large 2002 head/shouldersbottom pattern confirmed a major breakout and renders upside targets to the mid-50s (50% retracement from 2000-2009 decline) and then to the mid-60s (61.8% retracement and the technical target based on 2013 breakout). Howev-er, an overbought condition into the recent rally toward the low-60s coupled with two negative outside weeks (3/6/15 and 4/24/15) and rolling of the 10-wk/30-wk ma as well a small head/shoulders top warn of a correction to 52/49.5.

Union Pacific Corp (UNP)

2011 2012 2013 2014 20152020

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First Second Third First Second Third 96.17 90/83-85 70.5-74.5 102-106 110-112 118-120

Technical rating Bullish Sector Industrials

Last Sale Price $96.97 vmw

Rationale: Although the longer-term trend is still favorable we are becoming increasingly concern about near-to-medium term of UNP as the Transportation sector remains under pressured. A negative outside month on Jan '15 and a weekly death cross sell hint of a potential intermediate term top. From Feb '15 peak UNP has fallen 22% and is near-ing an inflection point along key support at 96.17 or the 2011 uptrend and the pivotal Oct '14 low. A negative outside week on 6/26/15 coupled with violation of 96.17 would confirm a head/shoulders top and signals a deep correction.



United Technologies Corp (UTX)

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First Second Third First Second Third 110 100-103 95.5-97 120.66 124.45 135-136

Technical rating Neutral Sector Industrials


Rationale: Although the longer-term trend remains bullish, the July ’14 breakdown of 2012 uptrend and a death crosstechnical sell signal suggests a neutral intermediate-term trading range scenario. There is also significant resistance re-siding near 121-124 corresponding to a trend line dating back to late 1990s as well as the top of the 2008/2009 up-trend channel. Nonetheless, the 11/21/14 positive outside week has led to a consolidation phase that solidifies the technical base necessary for the next rally. The 10/30-wk ma are rapidly converging towards another inflection point.

VMware Inc (VMW)

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First Second Third First Second Third 84-85/80-81 73.65-75 64.86-65.02 92-93 95-97 103-104

Technical rating Bearish Sector Technology


Rationale: Our bearish technical outlook on VMW is based on the following negative developments: a Fan formation breakdown, a complex head and shoulders top pattern, a negative outside month pattern (Apr '14) and increased vola-tility via downside gaps (Mar/Apr/Oct ‘14 and Jan '15). Failure to convincingly clear above the extension of the third fan line near 100-105 has led to the recent correction. Nonetheless, a successful test of support in the mid-to-high 70s coupled with a gap up and a positive outside month in Apr '15 can trigger an oversold rally to the low-90s/low-100s.



Statement of Risk Stock market returns are difficult to forecast because of fluctuations in the economy, investor psychology, geo-political conditions and other important variables.

Appendix

Technical Research Rating Definitions

Rating Corresponding Rating Category

Definition and criteria

Bullish Buy Well-defined, reliable uptrend, an increase in the rate of change (or strong momentum) and confirming technical indicators

Neutral Hold Trading range trend, a flat rate of change and confirming technical indicators Bearish Sell Negative or weakened trend, momentum and confirming technical indicators N/A Not enough historical data to make an evaluation

Description and Methodology This report provides technical analysis on a dynamic list of stocks that, we believe, are of a wide interest. Please note that technical views are highly variable and will change with market conditions. Accordingly, these ratings are only valid as of the publication date. Because CIO WMR equity sector analysts and WMR technical analysts employ different analytical methodologies, technical recommendations are, at times, contradictory to fundamental recommendations for the same security. For the latest company ratings by WMR sector analysts, please refer to the most recent equity sector research reports, located in the Equity Section on the Online Services Research website. For more background on the content of this report, please see Technical Analysis Research Primer, 18 February 2010.



Appendix Term / Abbreviation Description / Definition

% +or- Moving Average (DMA)

The percentage above or below the moving average (see Moving Average) is used to help measure an overbought or over-sold condition and is a component of risk management. It is calculated by taking the difference between the group price and its 30-week moving average (see below), and then dividing by the 30-week moving average times 100.

30-Week Moving Average

Also known as the 30-week line or 150-day line), this is one of the most popular and respected moving average indicators (see Moving Average) in technical circles. It is calculated by totaling the latest 30 weekly (usually Friday closing) prices and dividing by 30 to arrive at the average. Each week, the most recent week’s figure is added to the total, and the price level from 30 weeks ago is subtracted – hence the term “moving.” Please note that a breakout above or breakdown below this line does not, in and of itself, constitute a buy or sell signal.

Adjusted Relative Strength (ARS)

Number gives a 50% weighting to the 1-month relative strength, 30% to the 3-month, and 20% to the 6-month numbers to arrive at a single weighted number.

Base A chart pattern marking a period of accumulation following a downtrend. The larger the base, the greater the upside poten-tial following its completion. A base can take many forms.

Beta A measure of volatility of a security as it relates to the market as a whole. Beta is often calculated using regression analysis. A beta is basically the tendency of a security’s returns to respond to swings in the market. A beta of 1 indicates that the se-curity’s price will move with the market. A beta of less than 1 means the security will be less volatile than the market. A beta of greater than 1 implies that the security’s price will be more volatile than the market.

Blow off stage to a major rally

This is often the last stage of a speculative bubble to a major rally. The blow off phase tends to be steep, but short-lived that often affords little opportunity for investors/traders to exit their positions. As price of a security or an asset advanced to an unsustainable level via a parabolic uptrend this give rise to the bursting of the speculative bubble resulting a quick and dra-matic decline as investors/traders try to exit the market/security at the same time.

Breakdown A technical term indicating a downside resolution of a chart pattern. Its significance is determined by the same factors gov-erning a breakout.

Breakout A technical term indicating an upside resolution of a chart pattern. Breakouts can take many forms, and their degree of im-portance is determined by the significance of the chart pattern which preceded it.

Broadening Top For-mation

The Broadening top is a rare technical formation that resembles an inverted triangle pattern. It is formed by price swings that are increasingly widening and expanding volume. The most common of these broadening top patterns are the three ascending peaks and two descending troughs. The combination of wide price swings and increasing volume often convey an increasingly volatile and emotional market that's basically out of control. This pattern is often associated with market tops rather than market bottoms. The confirmation of the Broadening top occurs when the price violates the second of these two troughs.

Channel

A chart pattern comprised of two parallel trend lines, which form a trading band. Channels take the form of uptrend, down-trend and horizontal.

Death Cross The opposite of a golden cross, this is a crossover on the chart resulting from a security’s shorter-term moving average falling below its longer-term moving average. Technicians often see this as a bearish technical sign indicating the market has turned negative on the security.

Downtrend Line

A trend line connecting successively lower peaks for a stock (or market). Its technical significance is determined by the same factors governing an uptrend line.

Fan reversal pattern The fan formation is a technical pattern that is based on the use of multiple trend lines to denote a major trend reversal. The fan pattern gets its name as it basically resembles a “fan”. It should have a minimum of three trend lines (uptrends or down-trends). The break out/break down of the third downtrend/uptrend often completes the fan pattern and signals the start of a major trend reversal. The starting point of these trend lines should come from a significant peak or a significant trough.

Fibonacci Retrace-ment Level

A technical analysis term used to describe potential areas of support (price stops declining) or resistance (price stops rising) on the charts. After a strong rally or decline there is a tendency for a security to retrace a certain portion of its prior move (up or down). Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before continuing in the original direction. These levels are computed by taking the two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

FSR Forecast Stock Return is defined as expected percentage price appreciation plus gross dividend yield over the next 12 months.

Gap

An open space in a chart created when a stock (or market) opens either higher than its highest level attained during the prior session (referred to as a gap up or an upside chart gap) or lower than its lowest level reached during the prior day (called a gap down or a downside chart gap). Some gaps are caused by events and should be ignored: ex-dividend gaps, new share issues, and expiration of futures contracts.



Appendix Term / Abbreviation Description / Definition

Golden Cross A crossover on the chart that involves a security’s shorter-term moving average (such as the 50-day moving average) crossing above its longer-term moving average (such as the 150-day or 200-day moving average). Technicians often interpret this crossing of two moving averages as a bullish technical sign that suggests the market has turned in favour of the security.

Head-and-Shoulders Pattern

This technical formation is one of the best known of the reversal patterns. There are two types of head-and-shoulders pat-terns that often appear on the charts – H/S top and H/S bottom. Both of these patterns often denote the process of a reversal either from a bullish or bearish trend. Head-and-shoulders formation often is comprised of a left shoulder, a head, and a right shoulder, and a line drawn across its shoulders defines its neckline. The breaking of the neckline to the upside confirms a head-and-shoulders bottom breakout, which signals the start of a bullish reversal favouring higher prices. The violation of neckline to the downside validates a head-and-shoulders top, reaffirming a bearish reversal of lower prices.

Internal Trend Line A single trend line connecting at least several high and low points for a stock (or market) over time.

Linear Regression Band

A common statistical technique often used by investors/traders to better forecast values by utilizing the least squares fit method to plot a trend line. A linear regression band consists of upper and lower bands. These bands are calculated by computing the number of standard deviations above or below of the regression line.

Moving Average (m.a.)

This is a technical indicator frequently used in technical analysis to show the average value of a security’s price over a set period of time. This tool is designed to smooth out a stock’s (or market’s) shorter-term fluctuations to provide a better picture of an underlying trend. Moving averages generally are used to measure momentum and define areas of possible support and resistance. Moving averages can be helpful as they emphasize the direction of the dominant or prevailing trend and also tend to smooth out price and volume fluctuations, or “noise,” giving the trader or investor a clearer picture of the security in ques-tion. Many moving averages exist.

MRA Market Return Assumption is defined as the one-year local market interest rate plus 5% (a proxy for the equity risk premium and not a forecast).

Neckline Sup-port/Resistance

This is a trend line that is drawn across the bottoms or tops of the left shoulder, the head and the right shoulder of a poten-tial head-and-shoulders bottom or top pattern. When prices break through this neckline support level and continue falling after forming the right shoulder, it confirms a head-and-shoulders top formation. Conversely, neckline resistance is a trend line drawn across the tops of the left shoulder, the head and the right shoulder. When prices break above this neckline re-sistance level and keep on rising, it typically completes the head-and-shoulders bottom pattern.

Overbought A technical condition in which the price of a security has risen to such a degree that the price becomes overvalued or has reached the upper band of its trading range resulting in a potential pullback in price.

Oversold Opposite of Overbought. A technical condition that occurs when the price of a security has fallen to such a degree that the price becomes undervalued or has reached the lower band of its trading range prompting a potential rally.

Positive/Negative “Outside” Day

When one day’s range (high and low) exceeds the prior day’s range, and the stock (or market) in question closes near its daily peak, this is referred to as a positive “outside” day. A negative “outside” day would be recorded if the stock (or index) finished near its daily low after having a wider range than the prior session. The same rule can be applied on a weekly and monthly basis as well.

Relative Strength

Relative strength is a performance comparison between a sector, group, or stock and the S&P 500 Index over a specified time frame. Our time frame is often a one-, three-, and six-month basis but does vary according to investment orientation.

RRD Rating/Return Divergence is automatically appended to the rating when stock price movement has caused the prevailing rating to differ from that which would be assigned according to the rating system and will be removed when there is no longer a divergence, either through market movement or analyst intervention.

Support An area where increased buying interest is likely to develop during a decline. These points, which can take several forms (minor, major, etc.), often provide downside protection for an issue in a primary uptrend, but only temporary relief to an issue in a primary uptrend, during which time many support levels are often broken.

Top A chart pattern marking a period of distribution following an uptrend. The larger the top, the greater the downside potentialfollowing its completion. It, too, can take many forms.

Triangle Patterns There are three different types of Triangle patterns – Symmetrical, Descending and Ascending. Symmetrical Triangle is con-sidered to be a continuation pattern that often signals a period of consolidation in a trend followed by a resumption of the prior trend. It is formed by the convergence of a descending trend and an ascending trend. An Ascending Triangle is a bullish pattern, which is denoted by two trend lines – a flat trend line and an ascending uptrend line. A Descending Triangle is a bearish pattern. It is the opposite of the Ascending Triangle in that there is a flat trend line and a downward sloping down-trend line.



Appendix

Disclaimer

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