Nel ASA finds itself in a precarious moment. The Norwegian hydrogen company’s shares have slumped to 0.21 euros, a level that directly coincides with the 200-day moving average — a line that often separates a correction from a full-blown downtrend. Having lost nearly 40 percent in just over a month from a 52-week high of 0.37 euros reached in late May, the stock is now wrestling with both internal disruption and sector-wide revaluation.
The exit of chief executive Håkon Volldal, who is departing for packaging group Elopak, could not have come at a worse time. Volldal will stay on for up to six months to facilitate the transition, but the leadership vacuum threatens to deepen uncertainty just as Nel faces a steep operational slide. First-quarter orders collapsed by 73 percent, weighed down by high interest rates and a dearth of subsidies that have pushed hydrogen project developers to delay final investment decisions.
The company did clear an old legal hurdle in early June, reaching a settlement with Japan’s Iwatani Corporation that will cost an estimated $7 million. That charge will hit the upcoming half-year results, which Nel is set to report on July 15. While management has now removed a lingering liability, the financial penalty adds to the pressure on a business whose order backlog is shrinking.
The broader hydrogen industry tells a different story from the stock market’s pessimism. Ballard Power Systems recently agreed to acquire GeoPura in a deal valued at over £300 million including earn-outs, with completion expected in the second half of 2026. That transaction signals strategic consolidation among technology players betting on long-term relevance. But for now, short-term risk aversion is overwhelming that industrial conviction, and Nel is caught in the crosscurrents.
Should investors sell immediately? Or is it worth buying Nel ASA?
On the charts, the 200-day average at 0.21 euro represents a critical floor. That level matches the current price almost exactly, and the stock’s 14-day relative strength index stands at 34.3 — just above the classic oversold threshold of 30. If the moving average fails to hold, the next major support is the February 52-week low of 0.17 euro, implying a further 23 percent downside. The annualized volatility of roughly 88 percent underscores just how nervous the holder base has become. Nel is trading some 20 percent below its 50-day average, a gap that typically amplifies selling pressure.
Despite the recent bloodbath, the stock remains up about 11 percent year-to-date. That cushion is evaporating fast, but it suggests that the January-to-May rally was substantial enough to leave a buffer — at least for now. Whether that buffer survives depends on whether the 200-day average can stem the tide and whether Nel can deliver enough large orders on July 15 to stabilise its order book.
The hydrogen sector is undergoing a painful but familiar transition from euphoria to proof-of-delivery. Nel ASA is not alone in this phase, but its combination of a departing CEO, a cash-consuming settlement, and a near-80 percent plunge in new orders makes it one of the most exposed names. The 0.21-euro level is more than a technical marker — it is a test of whether the company can hold the line while the sector waits for the next catalyst.
Ad
Nel ASA Stock: Buy or Sell?! New Nel ASA Analysis from June 24 delivers the answer:
The latest Nel ASA figures speak for themselves: Urgent action needed for Nel ASA investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from June 24.
Nel ASA: Buy or sell? Read more here...
