Nel ASA Shares Show Signs of Finding a Floor

A period of sustained selling pressure for the Norwegian hydrogen specialist, Nel ASA, appears to have paused. Technical indicators at the Oslo exchange are now flashing signals that suggest a shift in the short-term outlook, moving away from the recent high volatility.

This potential technical stabilization is not occurring in a vacuum. It is supported by recent corporate developments. In November, Nel ASA secured a significant contract with GreenH AS for hydrogen projects in Kristiansund and Slagentangen. Furthermore, insider transactions have provided a vote of confidence: a member of the board increased their personal holding in the company in early November. This move by leadership signals long-term conviction, despite the acknowledged revenue challenges projected for 2025.

Technical Assessment Receives an Upgrade

Following Monday's trading session, which closed with the share price at NOK 2.34 for a modest gain of 0.69 percent, analytical systems revised their rating on the equity. The stock was upgraded from a "sell" recommendation to a "hold/accumulate" status.

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

This reassessment is primarily driven by the formation of a stable support zone. A volume-based floor has been established around the NOK 2.32 mark, providing a foundation for the price. The share has recently been oscillating between NOK 2.30 and NOK 2.36, though daily volatility remains noticeable at approximately 2.43 percent.

Key Levels to Watch in the Trading Session

For Tuesday's trading, specific pivot points are in focus. Immediate resistance is situated in the NOK 2.36 to NOK 2.37 range. A confirmed breakout above this zone could trigger further buy signals within algorithmic trading systems. On the downside, the primary risk level is identified at the NOK 2.26 stop-loss point. Based on the 14-day Average True Range (ATR), a potential movement span of nearly five percent can be anticipated.

The confirmation of the newly established support level is now critical for the near-term trajectory. If the share can successfully defend the NOK 2.32 level during today's session, the scenario for a technical trend reversal will gain substantial credibility.