Star Scientific, Inc. (NASDAQ:STSI)
A: After the gap down 6/17, we called a Downtrend as the patent dispute loss to Reynolds could be problematic for STSI gaining traction near term. The majority of the value of the company was based on a positive outcome of this patent dispute. So when they lost, it took the wind from its sails. They may also have trouble raising new capital with such a low price per share. Until these issues are sorted out, it is difficult to predict any improving momentum but our system will be watching for any positive technical events.