The last quarterly figures of Nel ASA caused anything but enthusiasm on the stock market and led to a downward trend, which the share of the Norwegian hydrogen specialist has not yet coped with. Most recently, the bulls fought to at least prevent a fall below the 1.30 euro mark.
So far, they have been reasonably successful, but Monday brought the next bad news. Competitor ITM Power also shocked the markets with low sales and high losses, which left its mark on the Nel ASA share.
Things are getting tighter
At 2.2 percent, the losses were significantly smaller than those of ITM. Nevertheless, the stock continued to approach the not unimportant line at 1.30 euros. At the close of trading, 1.34 euros was still on the ticker. So it could get really tight again in the next few days.
If it goes further south, a visit to the 52-week low, which is currently located at 1.24 euros, could soon be imminent. Below that, everything could break and set a real sell-off in motion, which would probably also be tantamount to an end of the long-term upward trend. Of course, we do not want to hope for that at this point.
The Nel ASA share needs positive signals
More than ever, the Nel ASA share could now use some good news. It doesn’t even have to come from the company itself. It would be enough if the hydrogen sector in general were to get a bit of a boost again. Whether this will happen in the short term, however, remains to be seen.
At least the analysts remain optimistic about Nel in particular and hydrogen in general and are not stingy with ambitious price targets and buy recommendations. For the moment, this is a small consolation, if one does not want to understand the low prices as an entry opportunity.