Nel ASA Shares Show Technical Vulnerability

Nel ASA NO0010081235

The stock of Norwegian hydrogen technology company Nel ASA has resumed its downward trajectory following a brief recovery attempt. Having failed to sustain a position above the 2.30 Norwegian krone (NOK) threshold, the share price has retreated toward the lower end of its recent trading range. A similar pattern is evident on German exchanges, where the equity is trading around 0.19 euros.

Investor caution is currently prevailing. The major investment decision announced in December 2025, aimed at industrializing the Next-Generation Pressurized Alkaline platform, has so far failed to provide lasting upward momentum for the share price. While the technology's significance is acknowledged, the market's primary focus remains the path to profitability.

With no major new commercial contracts or projects reported in the initial trading days of January, the stock is reacting more strongly to broader sector movements. Amid a climate of profit-taking in the renewable energy space, this absence of positive news has left shares without a clear catalyst for a rebound.

Key Trading Dynamics

A summary of the current trading activity highlights several concerning signals:
* The stock declined by nearly 3% on the Oslo exchange.
* Resistance in the 2.28 to 2.30 NOK range has been firmly established.
* Trading volumes remain moderate, indicating a lack of decisive buying interest.

Analyzing the Technical Perspective

From a chart analysis standpoint, the situation appears fragile. The inability to hold ground around 2.30 NOK has shifted attention to lower support levels.

• Support Levels: The area near 2.20 NOK is now viewed as a critical short-term support zone. A decisive break below this level could trigger further technically-driven selling pressure.
• Trend Direction: The short-term trend is bearish. The share price is trading below key moving averages, which reinforces the weakened technical picture.

Outlook for the Coming Period

Market participants are now looking ahead to the pending fourth-quarter report, scheduled for release later in the first quarter of 2026. Convincing evidence of an improving order intake and revenue growth will be crucial.

In the absence of such positive signals, the share price will likely remain confined to a consolidation phase. The upcoming challenge for Nel ASA is to demonstrate through its quarterly results and tangible operational progress that its strategic investments can translate into meaningful financial improvements in a timely manner.