Copper on MCX settled down -1.46% at 394.20 post the biggest loss in almost a month amid concerns over U.S.-China trade friction and the U.K.’s plans to leave the European Union. Yesterday U.K. Prime Minister Theresa May offered her most explicit vision of Britain’s future relationship with its EU neighbors, pledging to quit the single market and seek a customs agreement with the bloc to deliver “a smooth and orderly Brexit.” In China, President Xi Jinping pushed back against criticism of globalization by Donald Trump and other Western populists. Copper also fell as investors trimmed positions before China’s Lunar New Year holiday. Comex Copper declined 2.4 percent to settle at $2.625 a pound the biggest loss for a most-active contract since Dec. 19. On the London Metal Exchange, copper slid 1.9 percent. Yesterday Copper and other base metals initially gained traction on the back of Trump's November election win amid expectations that spending on rebuilding U.S. infrastructure would soar, soaking up more industrial raw material. Market expect copper to continue to reflect such expectations, at least through the first few months, as Trump settles into the White House and his economic blueprint takes shape. A recent sell-off of the greenback deepened overnight as U.S. traders returned from a long weekend to widespread weakness after Trump, whose inauguration takes place on Friday, said the greenback's strength against the Chinese yuan "is killing us". Technically market is under long liquidation as market has witnessed drop in open interest by -10.83% to settled at 16813 while prices down -5.85 rupee, now Copper is getting support at 390.7 and below same could see a test of 387.3 level, And resistance is now likely to be seen at 398.2, a move above could see prices testing 402.3.

Trading Ideas:

Copper trading range for the day is 387.3-402.3.

Copper dropped as uncertainty ahead of Donald Trump's inauguration as U.S. president and concerns over Britain's impending exit weighed on prices.

LME copper stocks fell another 1,625 tonnes, exchange data showed, bringing their decline for the year to 34,450 tonnes, or 11 percent.

Chinese customs data showed the country shipped in a record 4.95 million tonnes of copper in 2016.