e.Digital Corporation (fka EDIG)

[Cassandra]

Just like a Smith and Wesson can beat 4 aces, additional dilution can beat a TA chart. Remember that an S-3 registration is required to be filed by 12/19/03 (or else substantial financial penalties are due). The S-3 will likely register at least the 20 million common shares required for the Series D and Series E convertibles and may also include more shelf shares.
Traders, who rely on TA, tend to shy away from stocks in which the company is registering more shares for sale. In this case, the financiers can legally short the stock since the convertible shares and warrants are considered an underlying long postion.