Chipmaker Nvidia ( NVDA) made a new 52-week low in trading Wednesday as traders seemed to focus on recession fears. Let's visit with the charts and indicators to see if this current weakness will continue. 
In this daily bar chart of NVDA, below, we can see a downtrend in force since November. Prices were trying to hold in May and early June, but Wednesday's new low for the move refreshed the downtrend. The slope of the 50-day and 200-day moving averages are negative/bearish.
The On-Balance-Volume (OBV) line has mirrored the price decline, but it has yet to make its own new low giving us a minor bullish divergence. The 12-day price momentum study made a low in April and a higher low in June even though prices made a lower low. This difference between the price action and the indicator is a bullish divergence. The OBV divergence and the momentum divergence could foreshadow a price recovery for NVDA.
In this weekly Japanese candlestick chart of NVDA, below, we can see some lower shadows in May but no clear bottom reversal patterns. The slope of the 40-week moving average line is bearish. The weekly OBV line is pointed lower and the Moving Average Convergence Divergence (MACD) oscillator
is bearish but showing some narrowing.
is bearish but showing some narrowing.
In this daily Point and Figure chart of NVDA, below, we can see a potential downside price target in the $132 area.
In this weekly Point and Figure chart of NVDA, below, we can see a very bearish price target of only $24. Don't shoot the messenger.
Bottom line strategy: If we only looked at price we would have to be bearish on NVDA, however, with bullish divergences from two of our favorite indicators we don't want to be too bearish as a trading bounce may unfold before further losses.
