Copper on MCX settled down -0.28% at 392.85 amid concerns over U.S.-China trade friction and the U.K.’s plans to leave the European Union. 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. Still, investors are bullish after a week of mostly positive Chinese data and possible supply disruptions at Chile’s Escondida mine. Chinese imports of unwrought copper and copper products rose 29% month-on-month to 490,000 tonnes in December, the highest level since March 2016. Still, year-on-year, imports were down 8%. China’s imports of unwrought copper and copper-fabricated products totalled 4.95 million tonnes in 2016, up 2.9% on the previous year, according to preliminary customs data released on Friday January 13. Boosted by higher government spending and record bank lending, China's economy grew by a faster-than-expected 6.8 percent in the fourth quarter, giving it a solid tailwind heading into what is expected to be a turbulent 2017. But Beijing's decision to double down on spending to meet its official growth target may have come at a high price, as policymakers will have their hands full this year trying to defuse financial risks created by an explosive growth in debt. The world's second-largest economy also faces increased uncertainties from a cooling housing market and the government's bid to push through painful structural reforms, which could help deal with the root-cause of rising debt and housing problems but weigh on near-term growth. Technically market is under fresh selling as market has witnessed gain in open interest by 0.3% to settled at 17190, now Copper is getting support at 389.1 and below same could see a test of 385.3 level, And resistance is now likely to be seen at 396.8, a move above could see prices testing 400.7.

Trading Ideas:

Copper trading range for the day is 385.3-400.7.

Copper prices dropped amid concerns over U.S.-China trade friction and the U.K.’s plans to leave the European Union.

China's economy grew 6.8 percent in the fourth quarter from a year earlier, slightly more than expected

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.