Nel ASA Shares Show Signs of Life After Prolonged Downturn

Norwegian hydrogen specialist Nel ASA is displaying tentative recovery signals following weeks of persistent downward pressure. In Friday's trading on the Tradegate exchange, the company's shares advanced 1.3 percent to reach €0.205. Market observers are now questioning whether this modest uptick indicates a potential reversal of the established bearish trend.

Friday's trading session brought several encouraging developments for the beleaguered hydrogen stock:

• Price Movement: Shares climbed to €0.205, marking a 1.3 percent gain
• Session Peak: The stock reached an intraday high of €0.208
• Trading Activity: Approximately 500,000 shares changed hands during morning trading

Despite these daily gains, a substantial gap remains between current levels and the 52-week high of €0.334—representing a 63 percent deficit. On a more positive note, the share price maintains a 19 percent buffer above its annual low of €0.166.

Major Contract Fails to Generate Sustained Momentum

Investor frustration continues to mount as even a significant $50 million order from HyFuel and Kaupanes earlier this month proved insufficient to ignite lasting positive momentum. Financial markets appear increasingly indifferent to revenue growth while losses persist.

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

Recent quarterly results showing declining revenues and ongoing financial losses have overshadowed individual contract announcements. The company's current market capitalization of approximately 4.4 billion NOK reflects this prevailing market skepticism.

Critical Technical Resistance Looms

From a chart analysis perspective, Nel's position remains precarious. The stock continues to trade substantially below its crucial 200-day moving average. Establishing a genuine trend reversal would require the company's shares to decisively break through the resistance zone around €0.21.

Whether today's upward movement represents more than temporary technical recovery will become clearer in coming trading sessions. Until Nel demonstrates a credible pathway to profitability, the stock will likely continue experiencing significant price volatility.