Cocoa futures continue to expand their trading range within a broad descending triangle chart pattern. The descending triangle is illustrated here and can be found on the Autochartist emerging patterns platform on the 240-minute time interval. Cocoa finished Wednesday's trading session near the middle of this range at the $2,300 per ton level and appear to be headed towards a retest of support.

The pattern currently measures 38 candles in width since the swing high at $2,450 per ton set the downtrend in motion. Gradually lower lows and higher highs within the range established the support and resistance levels for the market, giving traders a clear indication of near term price direction. The descending triangle scores an overall quality ranking of 7 bars, with strong initial trend and clarity scores as well, suggesting the pattern is likely to continue. A breakout above the resistance level at $2,410 per ton would be needed to shift the chart analysis to a strongly bullish outlook. Meanwhile, the gradual selling pressure is likely to carry the rice back to the bottom of the triangle near $2,250 per ton to finish this leg down. A reversal from that level would represent a buying opportunity, with a significant breach of that support likely to trigger a downside breakout and acceleration of the downtrend towards new lows. For further information on this and other Autochartist products, visit our website at www.autochartist.com