Copper yesterday settled up 2.1% at 425.80 gained on Wednesday, hitting a two-week high as markets eyed the release of U. S. employment data later in the day, amid ongoing uncertainty over the future of the Federal Reserve's stimulus program. The U. S. was to release the ADP report on nonfarm payrolls later Wednesday, as well as the weekly government report on initial jobless claims, which comes out a day earlier than usual due to Thursday's Fourth of July holiday. Concerns over European debt crisis increased again due to Portugal political chaos. Portugal Foreign Affairs Minister and right-wing Portuguese People's Party leader Portas submitted his resignation, and if he resigned, the People's Party will likely exit the governing coalition, so the governing party will be unable to win the majority of the parliament, which may lead to government collapse. As market concerns spread, Portugal's government bond yields surged to above 8%, while the euro fell to a low of 1.29. But positive euro zone economic data boosted market confidence. Euro zone June Markit PMI was finally 48.7, a record high in 15 months, and Spanish and French service PMIs were both better than expectations, while Germany's service and comprehensive PMI was below expectations, but still above 50. Technically market is under fresh buying as market has witnessed gain in open interest by 10.57% to settled at 26566 while prices up 8.75 rupee, now Copper is getting support at 420.40 and below same could see a test of 415.10 level, And resistance is now likely to be seen at 428.60, a move above could see prices testing 431.50.

Trading Ideas:

Copper trading range for the day is 415.1-431.5.

Copper gained as investors closed out bets on lower prices amid concerns about limited copper supply and solid U. S. economic data.

Prices pared some of June's steep losses as mine shutdowns have combined with limited delivery from LME warehouses to choke immediate supply.

Growth in China's services sector expanded only modestly in June, in a sign that the economy is cooling.