I want one of these.

1/14/2022

When I was a kid, I read a lot of comic books… well, I read a lot of Batman.

I was a sucker for gritty vigilantes that didn’t have ridiculously absurd superpowers and thought it was cool that Batman was jacked.

(Superman? Give me a break.)

I still have one of my favorite Batman comics wrapped in cellophane:

(Source: studiojakemedia.com)

But I was always obsessed with the variety of gadgets in Batman’s utility belt that he used to detain villains…

In fact, I used to plead with my father to recreate some of them… even though they neverworked like the ones in the comics.

Fast forward to today and you can find just about anything, including what news outlets have dubbed as a “Batman-style device” called the BolaWrap.

This is a non-lethal, patented, hand-held device that shoots a lasso that can take down a perp from 25 feet away.

You can imagine my excitement…

And because of this, Wrap Technologies, Inc. (WRAP) is on the chart:

Above is the daily time frame all the way back to May of 2021…

I’ve traded this a couple of times in the past, both with options and long stock positions…

The trade volume goes from scant to surplus, so when the stock hits scanners, traders tend to pile in.

But I don’t know that this will be the case forever with the attention the company has received over the last two years…

Now, I prefer keeping charts as simple as possible and this is exactly what we’re doing here by focusing on the moving averages.

Like most small caps, the market hasn’t been too kind to WRAP as a “speculative”investment, but that makes this a good time to look as the moving averages are beginning to converge…

Simply put, it’s still early.

The downtrend is obvious…

While I’m not keen on catching falling knives, there’s something that sticks out on the chart over to the right (highlighted in white).

The Volume Profile has created a small Price Shelf around where the share price currently sits… The color of the bars on the Volume Profile show that the action is mixed, however, what’s important is the overall activity…

Again, I’m looking to the moving averages for clues and although the stock is trading below the 50 and 200sma (blue and green, respectively), the last several days have been unusual.

Until now, the 20sma (red) has been a tough barrier to cross, yet WRAP maintained two days of trading above it.

The indicators on the lower chart are trending upward as well. That’s the On Balance Volume, RSI, and MACD…

Based on this, I’ve loosely projected the potential direction of the moving averages if the stock makes a run for it…

I’ll watch for now, although a swing from the $4.00 area to $4.70+ appears actionable. Anything more will require substantial volume…

No dice under $3.85.

(Disclosure: I have no position in WRAP.)

Keep moving,

 

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.

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