Cocoa futures moved lower Friday after trading in a prolonged sideways range for most of last week. The market failed to hold key level support at the bottom of this range, identified by Autochartist as a shallow descending triangle chart pattern, which implies a potential furthering of the sell-off for Monday's session.

This descending triangle chart pattern is well-developed, measuring 45 candles across on the 240-minute candlestick chart. With an overall quality ranking of 7 bars and a high momentum reading on the breakout indicator, the pattern has very clearly defined support and resistance levels. Friday's action broke through the support at $2,260 per ton to trigger the breakout, with swift follow-through carrying the price down to the $2,200 per ton level.

The projected price target to complete the breakout suggests a minimum price target of $2,159 per ton, a level well within range of Friday's closing price. Further selling pressure may result in a more substantial decline towards the $2,070 per ton level marking the lower end of the forecast range.

A rally back above $2,280 would negate the breakout and suggest a possible recovery of the market to trade back inside the descending triangle.

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