Nel ASA Shares Plunge as Technical Support Crumbles

Norwegian hydrogen specialist Nel ASA is experiencing a severe technical breakdown as its shares extend a dramatic decline. The stock’s breach below multiple critical support levels signals deepening bearish momentum across all timeframes, with the violation of the 200-day moving average confirming the deteriorating technical picture.

Technical Indicators Flash Warning Signals

Market technicians are observing a cascade of bearish developments in Nel ASA’s chart pattern. The stock’s descent below the psychologically significant €0.20 threshold has triggered intensified selling pressure, culminating in a 3% decline to close at €0.198. This movement represents more than just a symbolic breach—it marks the stock’s decisive break below the closely watched 200-day moving average, a key long-term trend indicator.

The technical landscape reveals multiple concerning signals:
– Break of long-term support: Shares now trade substantially below the 200-day moving average
– Widespread weakness: Both the 20-day and 50-day moving averages have been abandoned to the downside
– Uniform bearish alignment: All major timeframes now point toward continued downward pressure

Sector-Wide Risk Aversion Compounds Pressure

Nel ASA’s struggles reflect broader challenges within Norway’s renewable energy sector, where investors are increasingly shifting away from growth-dependent technology stocks in favor of more defensive positioning. Elevated trading volumes indicate active distribution, suggesting institutional participants are reducing exposure to the hydrogen space.

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

The metrics underscore the severity of the decline:
– A 4.26% loss measured across the recent trend period
– Negative separation from the 100-day moving average
– Next technical support not expected until the historical lows around €0.17

Recovery Prospects Dim as Bears Dominate

The critical question for market participants is whether Nel ASA can arrest its downward spiral. The technical configuration deteriorated significantly over the weekend, with the breach of €0.20 effectively invalidating the recovery attempts witnessed in recent weeks.

Any potential stabilization would require a rapid reclaim of the €0.21 level, though current momentum appears to favor continued downside. The expanding distance from the 20-day moving average suggests accelerating downward momentum rather than simple consolidation.

With shares settling at €0.198 and the confirmed break of the 200-day moving average, the technical setup remains firmly bearish. Market attention now focuses on whether the historical support zone near €0.17 will provide a floor during the coming trading sessions.