Nel ASA Shares Test Key Support Level Amid Technical and Fundamental Pressures

Nel ASA NO0010081235

Shares of Norwegian hydrogen technology company Nel ASA came under significant selling pressure on Tuesday, breaking through a crucial technical support level. The stock fell nearly 4% to trade around NOK 2.30, decisively moving below the NOK 2.32 mark that had previously served as a floor. This decline erased the tentative signs of stabilization that had emerged at the start of the week, following Monday's close at NOK 2.34.

While the immediate trigger for the drop appears technical, underlying business fundamentals continue to weigh on investor sentiment. The company's third-quarter 2025 financial results, released recently, present a sobering contrast to occasional positive operational updates.

The financial data reveals several concerning trends:

• Contract Revenues Decline: Income from contracts fell 17% year-over-year in Q3, landing at 303 million Norwegian kroner.
• Sharp Drop in New Orders: New orders booked during the quarter totaled just 57 million NOK, representing a steep 64% decrease compared to the same period last year.
• Shrinking Order Backlog: The total order backlog now stands at 984 million NOK, which is 47% lower than its level twelve months ago.

Despite intermittent positive announcements—such as the mid-November update on the GreenH project in Kristiansund—Nel has struggled to secure large, binding contracts at a pace that meets market expectations.

Technical Breakdown Amplifies Selling

The breach of the NOK 2.32 support level is viewed by market technicians as a clear signal of weakness. This move likely triggered a wave of stop-loss orders, which in turn accelerated the downward momentum. Key technical indicators have turned negative once more, placing the equity in a precarious position.

The absence of any major company-specific news on Tuesday left the shares particularly vulnerable to this technically-driven selloff. Market participants are now closely watching to see if the stock can find a footing near the NOK 2.26 level, or if the negative momentum will push it toward its 52-week lows.

Market Weighs Recent News Against Quarterly Reality

The market's current focus seems to be dominated by the disappointing Q3 order intake, overshadowing other developments. For instance, Nel's early November announcement of a major contract worth over USD 50 million for the HyFuel and Kaupanes projects has done little to counterbalance the concerns raised by the quarterly report.

The prevailing question among investors is whether the company can successfully convert its pipeline and project announcements into a consistent stream of substantial orders, thereby rebuilding confidence and stabilizing the share price.