Nel ASA Shares Face Critical Support Test Amid Sustained Selling Pressure

Investors in Norwegian hydrogen specialist Nel ASA are enduring a severe test of patience as December begins. Rather than finding stability, the stock continues its descent, rapidly approaching critical technical levels that could precipitate a more dramatic decline.

Trading on Monday set a distinctly negative tone. While the shares briefly hovered around €0.204 in early session trading, sentiment deteriorated sharply by midday. Intensifying sell-off pressure drove the price down approximately 3.8% to €0.196 on the Tradegate exchange. This move underscores the palpable nervousness currently gripping the market.

This decline is not an isolated incident but part of a broader downward trajectory. The equity is now trading perilously close to key support zones. Market observers are focused intently on the level of 2.10 Norwegian Krone (approximately €0.18). A decisive break below this technical floor could trigger substantial liquidation, potentially sending the stock into a freefall.

Key Data Points for Investors

• Price Action: Shares fell 3.8% to €0.196 by midday Monday.
• Trading Volume: High activity, with over 1.3 million shares traded on Tradegate, indicates strong distribution pressure.
• Trend Analysis: The gap to the 52-week high of €0.334 (reached in March 2025) continues to widen.
• Financial Performance: Third-quarter 2025 revenue contracted by over 17%, despite a slight reduction in losses per share to -0.05 NOK.

Fundamental Concerns Compound Technical Weakness

The stock's weakness is driven by more than chart patterns; stark fundamental data is a primary culprit. The company is struggling to generate meaningful growth within its hyped sector. The 17%-plus drop in Q3 2025 revenue signals stalling demand, which is increasingly unsettling shareholders.

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

Although the per-share loss was narrowed to -0.05 NOK, this glimmer of improvement is insufficient to shift market sentiment. Analyst skepticism persists. Firms such as Kepler Cheuvreux maintain their "Sell" rating, with price targets below 2.00 NOK, implying the stock remains overvalued relative to its performance.

The market is now pricing in a harsh reality: a meaningful turnaround appears distant. The cancellation of major orders earlier this year—including Statkraft's 40-megawatt project—continues to cast a long shadow over the company's order book.

Can the Final Support Level Hold?

The outlook remains bleak. The combination of declining revenue, negative analyst commentary, and precarious chart positioning creates a toxic mix. Investors are currently voting with their feet. In the absence of a significant positive catalyst—such as an unexpected large contract—the path of least resistance points firmly downward.

All attention is now fixed on the 2.10 NOK support level. A sustained breach of this mark would likely accelerate the downward spiral. As December commences, the hydrogen pioneer remains firmly in the grip of bearish forces.