The Norwegian hydrogen technology firm Nel ASA finds itself navigating challenging market conditions. Despite securing multi-million dollar contracts throughout November, the company’s share price continues to hover around €0.20—a psychologically significant threshold that could determine its near-term trajectory.
Recent trading activity provides little encouragement. On the Tradegate exchange, shares managed a modest 1.7 percent gain to reach exactly €0.200. However, this minor uptick fails to mask underlying investor apprehension. Trading volumes remain subdued, with the stock confined to a narrow trading range as both institutional and retail investors maintain a cautious stance.
Substantial Contracts Fail to Generate Momentum
Market observers note a concerning pattern: Nel ASA’s operational achievements aren’t translating into share price appreciation. The company confirmed on November 10th its role as technology partner for GreenH’s hydrogen projects in Kristiansund and Slagentangen, representing 20 MW of electrolyzer capacity. Even more significant was the November 5th announcement of a $50 million purchase order for PEM equipment for the HyFuel and Kaupanes projects.
Yet the market response has been decidedly tepid. Brief price rallies following these announcements quickly dissipated, revealing a fundamental disconnect between the company’s contract wins and investor sentiment. This divergence points to deeper-seated concerns among market participants.
Third Quarter Results Cast a Shadow
The source of investor hesitation appears rooted in the quarterly figures released October 29th. Nel’s Q3 report presented several concerning aspects:
Should investors sell immediately? Or is it worth buying Nel ASA?
• Revenue contraction year-over-year—particularly worrying within a supposedly expanding sector
• A solid cash position provides some breathing room, though persistent cash burn remains problematic
• Growing order backlog from recent deals raises questions about the timeline for revenue conversion
Technical Positioning at a Crossroads
From a technical analysis perspective, Nel shares approach a potential inflection point. The stock currently trades below both its 50-day and 200-day moving averages—traditional indicators of a sustained downward trend.
The €0.20 level now serves as critical support. A decisive break below this threshold could signal further weakness, while sustained movement above €0.22 might indicate a potential trend reversal.
The coming trading sessions will reveal whether recent major contracts can finally catalyze investor confidence, or if Nel ASA will remain range-bound despite its operational progress.
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