As we head into Thanksgiving and the holiday schedule, cocoa has moved lower. After making new highs the market has turned volatile. The current channel looks negative and with lower volume we may see follow-through as trading picks back up Friday.
Positive demand news is needed to move prices back above 2650. Now that traders have been moving out of the December contract and into March futures it appears some longs have exited. COT data Friday will provide more information.
Currencies have provided little support as they have remained quiet. The continued move higher in the U.S. equities have given a positive tone to the global markets.
Look for the technicals to help the market find support. If 2585 can hold, a move above 2625 should be next.