Hydrogen Frenzy at Nel ASA and ITM Power: A Brief Pause for the Bulls—Will the Uptrend Continue? Is RE Royalties' Big Moment Finally Here?

Hydrogen stocks Nel ASA and ITM Power take a breather

Norwegian company Nel ASA has gone through a phase that left many amazed. The stock price has recently exploded from around EUR 0.20 to well over EUR 0.30 in a short time. For a long time before that, it seemed the specialist in electrolyzers might be falling behind. But then the knot snapped. Massive volume and a wave of optimism drove the stock price skyward. Currently, however, we are seeing a classic consolidation, and the stock is taking a breather. But this is no cause for concern; rather, it is completely normal market behaviour following such a steep rise. The company has radically refocused by spinning off its gas station division. Now, only the core business of industrial hydrogen production counts. Nel must now prove that the efficiency gains in production are sufficient to hold its own against global competition. The plant in Herøya is running at full capacity, and the world is waiting for economies of scale to finally drive margins higher. This could be the calm after the storm, during which it will be decided when there is enough momentum for the next upward surge. From a technical perspective, the stock could bottom out in the range of EUR 0.23 to EUR 0.25. Next, a renewed rebound toward EUR 0.40 could be on the cards. In this case, the stop price could be set quite tight.

The picture is quite similar for ITM Power from the UK. Here, too, a sharp price surge left many gaping in astonishment. Under new leadership, the British company has restructured and is now focusing on its core competency: PEM electrolysis. Consolidation at the current level is a healthy sign: the market is digesting the gains. Previously, the price had broken out of a sideways trend just above EUR 0.70 and moved higher. The stock rose to over EUR 2. Not a doubling, but a tripling within a few weeks. ITM Power has managed to regain investor confidence through a clear product strategy. Instead of complicated custom solutions, the company is focusing on standardization.

The partnership with Linde remains the backbone of this success and opens doors to major global projects. Nevertheless, the stock remains a bet on the industrial implementation of the energy transition. While the share price is currently taking a breather, behind the scenes, the reliability of the next generation of stacks is being fine-tuned. For investors, this means the bulls' initial thirst has been quenched; now, round two may be just around the corner. Nevertheless, the chart remains very ambitious. It almost resembles a flagpole, so further consolidation toward EUR 1.50, or perhaps even below, would be necessary before the stock takes off again.

RE Royalties: The Powerhouse from Vancouver

When shifting the focus from the volatility of hydrogen stocks to RE Royalties, one enters a world of structured returns. While others are still building their production halls and factories, RE Royalties is already reaping the rewards. The company has a compelling model in the renewable energy sector. As a licensor, RE Royalties provides the capital for projects and receives a share of revenue in return. A look at the company's latest presentation reveals its enormous stability, as the team has a track record of 25 consecutive quarters of dividend payments. Now that is quite a statement. After all, the hydrogen sector is typically still better known for burning through money. With a total of 122 licenses in its portfolio, the company is broadly diversified. From solar and wind to battery storage, it covers everything associated with the green future. Its recognition as one of Canada's "Globe and Mail Top Growing Companies" is therefore no coincidence.

The latest news underscores this expansionary course. On February 9, 2026, the company announced that it had invested an additional $800,000 in Solaris Energy's U.S. solar portfolio. The total investment is expected to reach up to $9 million. For RE Royalties, this deal means long-term revenue over 25 years from projects in states like California and Maine. Peter Leighton, the COO, makes it clear that the focus here is on quality. The company works with professionals to finance the transition to a low-carbon energy system while offering shareholders an attractive return. It is precisely these steady, contractually secured cash flows that already distinguish RE Royalties from the highly speculative technological bets of companies like Nel ASA or ITM Power.

Strategic Vision and Chart Analysis

On March 27, 2026, RE Royalties announced a formal strategic review. The board intends to explore all options to enhance shareholder value. The spectrum ranges from a complete sale of the company to new strategic partnerships. With PricewaterhouseCoopers (PwC), the company has brought on top-tier advisors. Bernard Tan, the CEO, notes that the company is now in its eleventh year of operation. The company has come of age. It currently has letters of intent for new deals worth approximately CAD 20 million on the table and is evaluating a pipeline of an additional CAD 200 million. It is a period of transformation in which the course for the next decade is being set. This news has sparked plenty of discussion and brought the stock into the spotlight of those speculating on a takeover or a massive revaluation. Such announcements are often an indication of further price increases.

The fundamental strength may soon be reflected in the chart as well. RE Royalties may be on the verge of breaking out of the downward trend channel at around CAD 0.38 to 0.39. The price gap from February 2026 at CAD 0.36 also plays a crucial role here. This gap has now been completely closed. In the technical jargon of chart analysts, this means: The "downward pull" is gone. The stock, or rather the chart, is now cleared and ready for new targets. On the downside, the CAD 0.35 level has recently provided reliable horizontal support. Once the price sustainably breaks above CAD 0.39, things could move very quickly. In this case, technical analysis points to a price target in the region of CAD 0.60. It is a rare constellation in which fundamental news, a strategic review, and a clean chart pattern interact so seamlessly.

At the end of the day, we see three companies shaping the energy market in their own way. Nel ASA and ITM Power have demonstrated the potential of hydrogen stocks when the market shifts into euphoria mode. If the current consolidation ends, prices could quickly rise further, but both stocks remain highly speculative. RE Royalties, on the other hand, seems almost like a rock in the storm. The company consistently delivers, pays dividends, and is technically poised for a buy signal if the CAD 0.39 resistance level can be broken to the upside. The combination of the Solaris deal and the ongoing strategic review makes the stock an interesting candidate for the watchlist or a direct buy. While Nel and ITM are responsible for the portfolio's adrenaline rushes, RE Royalties could be the stock that delivers long-term performance through its fundamentals and dividends.