Nel ASA is a Norwegian heavy electrical equipment company. It provides solutions for production, storage and distribution of hydrogen from renewable energy sources. Founded in 1927 and headquartered in Oslo, Norway, it can be traded under the ticker $NEL at Oslo Stock Exchange. Nel is a part of OBX25 index.
In the initial article from May 2021, we have forecasted a drop and reaction higher from 13.11-4.42 area. We were right, $NEL has reached that area. Now, a new bullish cycle might be in the very first stages. Moreover, current price of $NEL offers a great reward to risk. Last not least, investors and traders looking for long-term opportunities in the renewable energy market can enter $NEL stock to diversify their portfolio.
Nel ASA Weekly Elliott Wave Analysis 12.04.2022
The weekly chart below shows the Nel stock $NEL traded at Oslo Stock Exchange. From the all-time lows, the stock price has developed a cycle higher in blue wave (I) of a super cycle degree. Nel has printed the all-time highs in January 2021 at 35.15. Without any doubt, the advance is a textbook quality impulsive move up in 5 waves. Hereby, the red wave III shows a clear subdivision in five waves. Also, within the black wave ((3)), one can distinguish five waves. It is a well-known fact, that the market does not trade in a straight line. Indeed, after 5 waves higher, a pullback in at least 3 waves lower should take place. Only then, a new cycle higher can start.
From January 2021 highs, on can see a zigzag correction in the blue wave (II). Firstly, red wave a has ended in March 2021 at 21.00. Then, a bounce in red wave b has printed a connector in April 2021 at 27.13. Finally, a new cycle in red wave c shows an ending diagonal pattern being a 3-3-3-3-3 structure. On the one hand, wave c shows enough number of swings and starts breaking the RSI channel to the upside. On the other hand, the 13.11-4.42 extension area has been reached. As a conclusion, we call the low of wave (II) to be in place on October 2022. Now, while $NEL stays above 9.83, wave (III) is in progress.
Investors and traders should stay long from 13.11-4.42 area and can be still buying Nel ASA in short term pullback from that area targeting 44.94-66.64 area and even higher.