Copper yesterday traded with the positive node and settled 2.32% up at 386.5 rose sharply as a broadly weaker US dollar and fresh hopes that European policymakers will reach an agreement to contain the region's debt crisis boosted demand for riskier assets. Market sentiment strengthened amid reports that German Chancellor Angela Merkel and French President Nicolas Sarkozy were studying legal changes to the European Union treaty, which would include deeper financial integration among EU members. The pact, if agreed, would also give the European Central Bank more scope to undertake large scale bond purchases. The news boosted appetite for riskier assets, such as stocks and commodities and prompted investors to shun the U. S. dollar. Copper futures held on to gains after a spokesman for the IMF dismissed speculation that the lending organization was preparing a EUR600 bailout package for Italy. Europe as a region is second after China in global demand for the industrial metal and worries over its debt crisis have kept copper prices under pressure in recent weeks. Chief executive of global mining giant Rio Tinto said earlier that "continuing stresses in the euro zone and a weaker outlook for the US economy are inevitably affecting customer sentiment, which has become more negative in recent months." For today's session market is looking to take support at 380.2, a break below could see a test of 373.9 and where as resistance is now likely to be seen at 391.4, a move above could see prices testing 396.2.

Trading Ideas:

Copper trading range is 373.9-396.2.

Copper jumps above 2%, as mood boosted by eurozone resolution hopes.

Prices were also assisted by bargain-hunting buying and covering after the recent heavy losses.

Europe worries over its debt crisis have kept copper prices under pressure in recent weeks.