Nel ASA Shares Test Key Support Amid Persistent Weakness

Nel ASA NO0010081235

Investor anxiety is mounting as shares of Norwegian hydrogen specialist Nel ASA continue their downward trajectory. The stock's breach of the psychologically significant €0.20 threshold on German trading venues has intensified concerns, raising the prospect of a test of its annual lows.

The equity extended its losses in early Wednesday trading. This follows a 2.4% decline on Tradegate the previous session, which pushed the price down to €0.195. On its home exchange in Oslo, the share closed at NOK 2.29, hovering perilously close to the lower boundary of its 52-week range. The technical outlook has deteriorated further, with any brief recovery attempts being swiftly met by selling pressure.

The persistent weakness is fundamentally driven by the company's operational performance, which continues to challenge market confidence. Third-quarter results, released in late October, are still weighing on sentiment and have validated existing market skepticism. Revenue contracted by approximately 17% year-over-year to NOK 303.37 million.

Concurrently, the company remains unprofitable, reporting a loss per share of NOK 0.05 for the quarter. These figures carry significant weight, given the broader hydrogen sector's struggles with project delays and profitability challenges. Market experts reflect this caution; the average price target of NOK 2.275 offers little premium to the current trading level, highlighting the perceived lack of near-term upside potential.

Technical Analysis Points to Further Downside

From a chart perspective, bears are firmly in control. The sustained drop below the €0.20 mark in Germany serves as a distinct warning signal. The path of least resistance remains downward as long as the share price fails to recapture the NOK 2.40 level in Oslo with substantial volume.

Attention is now fixed on the support zone around NOK 2.20. A decisive break below this level could trigger a fresh wave of selling, potentially driving the price toward its 52-week low, which equates to approximately €0.166. Presently, no indicators suggest a rapid improvement in the stock's technical posture is imminent.