Copper yesterday traded with the positive node and settled 3.75% up at 357.35 with a largest one-day gain since early 2010 as investors poured back into the market, encouraged by signs that Europe's debt crisis was being brought under control. While thin volume made some traders cautious, copper led a more modest rally in other risk assets after the ECB took further steps to bolster the region's ailing banks. One of the worst-performing commodities during the 3rd qtr with a decline of more than 25%, copper found some traction this week after a brief dip through the $7,000 per tonne level attracted buyers. Supply-side concerns remained in the headlines Thursday, after workers at Freeport mine in Peru walked off the job Thursday in what is turning into an increasingly bitter wage dispute. Union’s workers at the company's massive Grasberg copper and gold mine in Indonesia extended their strike for a 2nd month, the longest strike in the country's mining sector. Traders were also encouraged by upbeat economic data in the US showing new claims for unemployment benefits rose by less than expected last week. For today's session market is looking to take support at 347.8, a break below could see a test of 338.3 and where as resistance is now likely to be seen at 363.3, a move above could see prices testing 369.2.

Trading Ideas:

Copper trading range is 338.3-369.2.

Copper jumped as investors were reassured by US data that hinted at an improvement in labour market

Copper may get boost from returning Chinese investors next week

BoE voted to buy 75 billion pounds ($115.7 billion) more in assets to keep the faltering recovery going