Copper yesterday settled flat at 417.05 swung between modest gains and losses on Tuesday, as investors were hesitant to extend the previous session's strong rally which took prices to a two-week high. Copper prices rallied more than 3% on Monday the strongest level since June 19, after upbeat manufacturing data out of Europe and the U. S. helped ease concerns over the global economic outlook. The U. S. Institute for Supply Management said its manufacturing purchasing managers' index rose to 50.9 in June, recovering from a shock contraction in May. Meanwhile, in the euro zone, data showed that Spain's manufacturing purchasing managers' index rose to 50.0 in June, the highest level in two years, up from 48.1 in May. France's manufacturing PMI improved to 48.4 from 46.4 in May, but Germany's manufacturing PMI fell to 48.6, from May's reading of 49.4. Market players now looked ahead to Friday's highly-anticipated U. S. nonfarm payrolls data for indications of how the recovery in the U. S. labor market is progressing. Any improvement in the U. S. economy was likely to reinforce the view that the Federal Reserve will begin to taper its bond purchase program in the coming months. Technically market is under long liquidation as market has witnessed drop in open interest by -14.21% to settled at 24026 while prices down -0.1 rupee, now Copper is getting support at 414.40 and below same could see a test of 411.80 level, And resistance is now likely to be seen at 419.20, a move above could see prices testing 421.50.

Trading Ideas:

Copper trading range for the day is 411.8-421.5.

Copper settled flat as a stronger dollar weighed on prices and investors remained concerned about economic prospects in China.

In Shanghai, meanwhile, copper drew some support from a flurry of demand for financing purposes in China.

Markets awaited U. S. non-farm payrolls data for June, which is due on Friday, for signals about the health of the world's largest economy