Analysis of the week from Aksjeanalyser.com – Nel ASA!
This week Aksjeanalyser.com (formerly StockCharts365.com) has taken a closer look at one of the most shorted stocks on the Oslo Stock Exchange: Nel ASA (NEL).
Aksjeanalyser.com believes there could be a short squeeze in Nel ASA (NEL) at any time and Aksjeanalyser.com foresees that the Nel share could come to rise sharply soon. The potential for the Nel share is assessed by Aksjeanalyser.com to be at least NOK 4.00 – 6.00. The Nel share is trading around NOK 3.00 right now.
What does ‘Short squeeze’ mean?
In simple terms, a short squeeze means that investors who short a share – i.e. borrow shares and sell them immediately, then buy them back at a later date – must buy the shares back at a higher price. A shorter speculates that the share will fall, but if the price is going up, the investors that go short can lose huge sums. If the price rises too much, the shorters may have to limit their losses by buying back the shares early, which drives the price up even further – this is a short squeeze. Nel ASA (NEL) is now among the most shorted shares on the Oslo Stock Exchange, with 5.63% of all shares shorted, as of December 02, 2024. Read more.
Briefly about Nel ASA
(ticker on Oslo Stock Exchange: NEL)
NEL is a company in the energy sector. The company’s main focus is on hydrogen, and the company provides solutions for the production, storage and distribution of hydrogen from renewable energy. Its customers are from the energy, gas and industrial sectors. The majority of the solutions come from a proprietary fuel cell technology. NEL stands for “Norwegian Elektrolys”. The company was established in 1927 and is headquartered in Oslo. For more information about the company, visit their website here.
Vikingen’s final Investment School week 49!
Vikingen Investment School started on May 13, 2024. We invested SEK 10,000 and through Vikingen Financial Software and our mentor Peter Östevik we have selected what is most worth buying here and now. This week will be our final. Now during the month of December, we follow Peter Östevik’s daily stock exchange tips, which we recommend that you also do on our website or here on our Facebook or Linkedin.
Over the past three months, our investments have increased by 12.51% and over the past six months by 5.75%. As beginners, we’re happy with that! Now we’re continuing to learn how to invest through Vikingen Financial Software but in a different way.
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Technical Analysis of Nel ASA
(ticker on Oslo Stock Exchange: NEL)
The Nel share has shown a very weak development since January 2021, when the share was at its peak around NOK 30.00 (cf. weekly chart above). Now the share is around NOK 3.00, and has thus fallen by around 90 percent.
So what now for the Nel share?
Aksjeanalyser.com considers that a strong rebound may be imminent for the Nel share. The stock is now at a significant technical support level around the NOK 3.00, and is at the bottom of a falling trend channel. Furthermore, the stock is heavily oversold according to various momentum indicators, indicating that a turn up for the stock may be around the corner. The stock is also as mentioned, among the most shorted stocks on the Oslo Stock Exchange.
Aksjeanalyser.com considers the Nel share to be a good buy candidate!
Aksjeanalyser.com assesses that a ‘Short squeeze’ can come at any time now in the Nel share, and it can quickly bring the share up to between NOK 4.00 – 6.00. Aksjeanalyser.com is of the opinion that the overall technical picture for the Nel share at the current price level makes the share a good buy candidate and sees a short-term potential for the share.
Vikingen Financial Software reminds that past positive results do not always indicate future profits and that all trading is at your own risk.
Sincerely
Catrin Abrahamsson-Beynon
