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.

Peter Mooses

Follow Peter on Twitter @PMoosesRJO. Peter's interest in trading began during a college internship with Bunge North America on the floor of the Chicago Board of Trade, where he assisted commodities traders and performed market research and analysis. Upon earning a B.A. in economics from the University of Iowa, Peter served as an analyst, transaction manager and team lead in the Global Trust Divisions for LaSalle Bank and Bank of America, where he managed transaction activity in multi-million dollar client fixed income and asset-backed securities portfolios. After years in the banking industry, it became apparent that Peter's real passion lies in futures trading. He joined RJO Futures because he enjoys the analytical aspects of futures trading and appreciates the economic impact that commodities have across all markets. Peter believes in utilizing market analysis and trends to help clients achieve balance between risk and return, while always keeping their investment objectives top of mind.