Here's a piece of news that might make you look twice at the sky: Wrap Technologies, Inc. (WRAP) said Friday it has a pre-order for more than 20 of its MERLIN-1 counter-drone systems. The buyer is Advanced Blast & Ballistic Systems Group, and the systems are headed for the UK market.

Think of it as a key step in the company's plan to expand in Europe. The MERLIN-1 is a non-lethal platform meant to take out hostile drones while they're flying. This deal isn't just about selling boxes; it's meant to support testing, demonstrations, and generally help the company get its foot in the door before it expects to really start commercial sales in 2026.

The idea is that public safety agencies, companies running critical infrastructure like power grids, and other security stakeholders could use this to deal with the growing problem of drone threats. It's pitched as a scalable response—meaning you can theoretically use more of them as the threat gets bigger.

What's the Stock Doing?

Let's talk about the stock, because that's why we're here. At $1.50, WRAP was trading 2.8% below its 20-day simple moving average when this news hit. That's the average price over the last 20 sessions, and being below it suggests the near-term trend is still leaning toward sellers. It's also trading a hefty 28.6% below its 100-day average, which tells you the intermediate-term trend hasn't been great either, even if things have stabilized a bit recently.

Now, momentum is trying to tell a slightly more hopeful story. The moving average convergence divergence (MACD), which is a measure of trend and momentum, was at -0.0548 versus a signal line of -0.0729. That suggests the downside momentum is easing—like the brakes are being gently applied on the decline—even if the overall trend hasn't fully turned around yet. Back in March, a so-called "death cross" happened, where the 50-day moving average fell below the 200-day. That reinforced a longer-term downtrend that buyers still need to fix.

For traders watching the levels: $1.50 has been acting as key resistance, a spot where recent rallies have stalled out and sellers have shown up. On the flip side, $1.00 is seen as key support, one of those round-number areas that often attracts buyers looking for a dip.

WRAP Price Action: Wrap Technologies shares were trading down 2% at $1.470 at the time of publication on Friday, according to market data.