Nel ASA Shares Face Critical Juncture Amidst Steep Decline

The equity of Norwegian hydrogen specialist Nel ASA is navigating perilous territory, with its valuation hovering near multi-year lows. A tentative attempt at stabilization is underway, but the broader picture reveals a security trading on exceptionally fragile ground. Having eroded a substantial portion of its value from the annual peak, the central question for market participants is whether the worst is truly over or if a final capitulation phase lies ahead.

Currently, the stock is attempting to form a base at approximately 2.39 Norwegian Krone (around €0.20), perilously close to its 52-week minimum. This represents a fragile stabilization effort within a clearly defined and persistent primary downtrend.

Key Data Points:
* Current Trading Level: ~2.39 NOK
* Recent Session Move: +2.05%
* 52-Week Range: 1.95 NOK – 3.61 NOK
* Prevailing Trend: Downward

Market anxiety surrounding Nel ASA is firmly rooted in its operational performance. The company's third-quarter 2025 results continue to cast a long shadow, acting as a significant drag on investor sentiment. While a 17% year-over-year revenue decline to 303 million NOK is concerning, a far more alarming signal came from the order intake. This metric collapsed by 64%, landing at just 57 million NOK—a figure that suggests a severe operational slowdown.

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

Prospects for a rapid fundamental turnaround appear dim. The recent minor share price appreciation is not supported by fresh growth catalysts but is occurring in a news vacuum. The company's order backlog, a critical indicator of future revenue, has contracted by 47% over the past year to 984 million NOK. This paints a picture of an organization consuming its existing pipeline without securing sufficient new large-scale contracts to replenish it.

Technical Outlook Remains Bearish

From a chart analysis perspective, Nel ASA shares continue to present a high-risk profile. The slight advance to 2.39 NOK does not alter the overarching bearish technical structure. The equity continues to trade decisively below all its key moving averages, which are widely watched by traders.

The technical landscape presents two clear scenarios:
* Support: The zone around 2.00 NOK represents a final psychological barrier. A decisive break below the 52-week low of 1.95 NOK would likely trigger a wave of stop-loss orders and immediate selling pressure.
* Resistance: Any attempt at a recovery is expected to meet formidable selling resistance in the 2.50 to 3.00 NOK range. This area is likely where numerous earlier investors, now holding losing positions, would seek liquidity to exit.

The session's modest gain is best interpreted as a minor technical bounce within a firmly established downward trend. In the absence of concrete new orders or a surprising operational reversal, the risk of a retest of the annual lows remains acute.