Nel ASA Shares Struggle Amid Technical Weakness

Nel ASA NO0010081235

The stock of Norwegian hydrogen technology company Nel ASA continues to face selling pressure. Despite a recent positive strategic announcement, the share price remains confined to a narrow range, highlighting a disconnect between corporate developments and short-term market sentiment.

Trading on Monday underscored the prevailing weakness. Nel ASA shares closed the session at 2.27 NOK, marking a decline of 2.58% from the opening price of 2.33 NOK. Throughout the day, the stock oscillated between a low of 2.26 NOK and a high of 2.38 NOK. The closing level near the session's low point indicates sellers maintained control.

Volume for the day reached approximately 4 million shares, suggesting active trading with a bias towards distribution. Over a ten-day horizon, the performance stands at roughly -2.9%, reinforcing the picture of near-term fragility.

Key Data Points

• Current Trading Level: Approximately 2.27 NOK
• Monday's Performance: -2.58%
• Daily Range: 2.26 NOK to 2.38 NOK
• 52-Week Range: 1.95 NOK to 3.61 NOK
• Recent Corporate Milestone: Final Investment Decision (FID) for Herøya expansion (December 12)

Strategic Progress Fails to Lift Sentiment

On December 12, Nel ASA confirmed a significant long-term growth initiative, making the Final Investment Decision (FID) to industrialize its Next Generation Pressurized Alkaline platform at Herøya, Norway. The plan involves establishing up to 1 GW of production capacity.

A notable portion of the required investment is secured through a grant of up to 135 million euros from the EU Innovation Fund. This subsidy substantially lowers the capital burden and bolsters the project's financial footing.

However, the equity market's reaction to this news has been muted. While the decision enhances the company's long-term production potential and scalability, subsequent price action appears more aligned with immediate concerns and the broader sentiment weighing on the hydrogen sector.

Technical Picture Hovers Near Support

From a chart perspective, the equity appears vulnerable. The price is trading just above the recent daily low of 2.26 NOK, which now serves as immediate technical support. A sustained break below this level could pave the way for a test of the 52-week lows near 1.95 NOK.

On the upside, initial resistance is situated at Monday's opening price of 2.33 NOK, followed by the day's high of 2.38 NOK. The share is currently moving within a horizontal channel, and a failed attempt to break above 2.38 NOK recently contributed to renewed selling pressure.

The short-term pattern suggests a consolidation phase with a negative bias. A clear and sustained move above the 2.38 NOK level would be needed to improve the immediate bearish technical outlook and allow room for a recovery.