Nel ASA Shares Approach Critical Technical Juncture

The stock of Norwegian hydrogen specialist Nel ASA finds itself at a pivotal technical crossroads. Despite securing multi-million dollar contracts, share values continue facing downward pressure as they battle to maintain the psychologically significant €0.20 threshold. Current technical indicators predominantly signal further potential declines.

Earlier in November, Nel announced a substantial $50 million equipment order from HyFuel and Kaupanes, representing the second-largest contract in the company's history. The agreement covers 40 MW of PEM electrolyser equipment.

However, this positive development failed to impress market participants. Investor sentiment remains burdened by October's quarterly results, which revealed:

• A 17% year-over-year revenue contraction
• A sharp decline in new order intake
• Persistent negative EBITDA figures, despite the company maintaining a solid liquidity position

Technical Positioning Remains Precarious

Currently trading at approximately 2.30 NOK, Nel's shares exhibit concerning technical characteristics. Momentum indicators have triggered clear sell signals, while volatility persists at elevated levels.

Should investors sell immediately? Or is it worth buying Nel ASA?

The crucial support level is now established at 2.30 NOK. A sustained breach below this threshold could open the path toward testing 52-week lows. Conversely, reclaiming the 2.45 NOK level on significant volume would be required to begin improving the negative chart structure.

Analyst Consensus Turns Bearish

Research analysts have adopted a predominantly pessimistic stance, with the prevailing recommendation being "Strong Sell." Market experts point to the company's shrinking order backlog and challenging environment for final investment decisions in hydrogen-related projects.

Even the recent "GreenH" technology partnership for projects in Kristiansund and Slagentangen failed to arrest the downward momentum. Markets are evidently awaiting more than isolated contract wins—they demand concrete evidence of margin improvement and accelerated project execution.

For active traders, the 2.25 NOK level represents the immediate focal point. A daily close beneath this support could pave the way for a move toward 2.00 NOK. On the upside, recovering the 2.40 NOK mark with strong volume would provide initial indications of stabilization.