The market for ITM Power shares is telling two sharply different stories. On one side, Europe’s hydrogen infrastructure pipeline keeps swelling with new cash – most recently a €123m grant for Austrian oil giant OMV. On the other, short sellers have piled into the stock at a pace rarely seen, betting the 42% monthly rout has further to run.
Bearish wagers on the electrolyser manufacturer surged to 35,500 shares by 15 June, a staggering 290% jump from the 9,100 shares short at the end of May. The days-to-cover ratio sits at just 0.5, meaning a sudden squeeze would be technically possible if buyers step in. That is cold comfort for a stock that has lost roughly 42% since Morgan Stanley’s upgrade from Equal Weight to Overweight in late April.
The fundamental backdrop remains robust. OMV secured €123m in subsidies to build a 140-megawatt green hydrogen plant in Bruck an der Leitha, Austria, with completion slated for the end of 2027. Such large-scale electrolyser projects are exactly the kind of demand driver ITM Power’s PEM technology is designed to serve. Germany and Namibia are also advancing an export infrastructure corridor, backed by tens of millions of euros from the EU and the federal government, further underpinning long-term demand.
Should investors sell immediately? Or is it worth buying ITM Power?
At home in Britain, the energy price cap will rise 13% from 1 July, adding roughly £18 a month to the average household bill. That hike, driven by wholesale gas volatility, strengthens the political case for domestic hydrogen production as a hedge against fossil-fuel price spikes. The government’s £15bn “Warm Homes Plan”, targeting the retrofit of five million homes, adds another layer of decarbonisation momentum.
The technical picture offers a mixed signal. ITM Power closed Friday at €1.30, notching a modest 1.33% gain on the day but still deep in the red for the month. The Relative Strength Index stands at 36.6, just above the oversold threshold of 30 that often triggers short-term reversals. Key support lies at the 100-day moving average of €1.25, with the 200-day line at €1.04 providing a tougher floor. Resistance is clearly defined at the 50-day average of €1.76.
Beyond Europe, India opened its first hydrogen plant powered by nuclear heat at Kalpakkam on 28 June, a pilot that uses a fast-breeder test reactor to split water. It is a reminder that the global hydrogen race is accelerating in multiple technology directions.
Closer to home for ITM Power, UK utility SSE holds its annual general meeting on 16 July, where it will deliver a first-quarter trading update. Investors will be watching for signals on the pace of British green infrastructure spending, a direct influence on the demand outlook for electrolysers. With the stock’s 30-day volatility approaching 99%, the coming sessions promise to remain choppy. The €1.30 level is the immediate battleground; a hold could open the door toward the 50-day line, but fresh order wins from Europe’s project pipeline are needed to provide a lasting catalyst.
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ITM Power Stock: New Analysis – 28 June
Fresh ITM Power information released. What’s the impact for investors? Our latest independent report examines recent figures and market trends.
Read our updated ITM Power analysis…
