Here on the one hour chart I have placed my trend lines on the 200 MA (black) and 50 MA (blue) and we can see that it has not quite achieved a break out condition but is very close. We would want to see the 50 MA move up through the 200 to get a decent rally.
One concern though is the steepness of the 200 still moving to the downside and this average will have to be turned around. This tells me that it is likely that in the short term there will be some continued sideways momentum and potentially a small move to the downside but nothing too severe. Under this scenario even if the 50 moves up through the 200 it will not have much momentum to continue the rally.
So more sideways action is predicted and patience is the key here.
One concern though is the steepness of the 200 still moving to the downside and this average will have to be turned around. This tells me that it is likely that in the short term there will be some continued sideways momentum and potentially a small move to the downside but nothing too severe. Under this scenario even if the 50 moves up through the 200 it will not have much momentum to continue the rally.
So more sideways action is predicted and patience is the key here.