Copper yesterday traded with the negative node and settled -1.25% down at 404.85 as a rally sparked by the surprise injection of liquidity into the financial system by central banks ran out of steam, although the decline was limited by upbeat data in the United States, the world's largest economy. The pace of growth in the U.S. manufacturing sector picked up in November at its strongest level since June, data showed earlier, while U.S. construction spending increased more than expected in October. Copper, used widely in manufacturing, particularly in China, bucked a generally positive trend of stock markets, which still basked in the major central banks' move to ease a global liquidity crunch. Weighing on the metal though was data showing slumping export demand stalled manufacturing in some of Asia's biggest economies, while in the euro zone the sector contracted at its fastest pace in two years last month. China's official purchasing managers' index for November fell to 49. The data came one day after Beijing boosted markets by lowering banks' reserve requirements by 50 basis points to try to ease credit strains. In yesterday's trading session copper has touched the low of 403.25 after opening at 409.25, and finally settled at 404.85. For today's session market is looking to take support at 401.2, a break below could see a test of 397.5 and where as resistance is now likely to be seen at 410.6, a move above could see prices testing 416.4.

Trading Ideas:

Copper trading range is 397.5-416.4.

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