Afshin Sazegar | The shares of Nel ASA (OL: NEL), (F: DIAG) recover on Tuesday by almost 2.9 percent. The reason for this is the relaxation in the oil market. Oil prices had risen noticeably over the past two trading days, fearing an escalation in tensions between the United States and Iran. Investors feared that this would increase the production costs of some companies, including those of the hydrogen company from Norway, and thus affect earnings. Today, however, the North Sea Brent has withdrawn from its multi-month highs by a good 0.9 percent and this is causing Nel ASA's share price to rise again.
For technical reasons, the hydrogen player remains trapped in the higher-level consolidation range with limits of 7.23 on the lower and 8.75 Norwegian kroner on the upper side. Only courses above or below these brands would open up further potential.
In terms of market technology, however, both the trend-following MACD and the stochastics are positive. The same applies to the RSI, which had slipped somewhat due to the recent correction at Nel ASA but was able to stay above its 50-point mark.
Secondary support is to be found in the form of smoothing over the last 38 and 90 days at 8.06 and 7.84 Norwegian kroner. The key support remains the lower edge of the range at 7.23 Norwegian krone, which is additionally reinforced by the 200-day line at 7.26 Norwegian krone.