Copper yesterday traded with the positive node and settled 0.63% up at 418.6 regained strength trading just below a 10-week high as prices continued to draw support from expectations for near-term monetary easing in China, the world’s largest copper consumer. Sentiment on the industrial metal remained upbeat amid growing expectations China will ease monetary policy in the near-term and provide further stimulus measures to boost economic growth. Copper traders were awaiting Tuesday’s report on Chinese gross domestic product for the fourth quarter to gauge the economic strength of the world’s largest consumer of the industrial metal. Official data published last week showed that Chinese consumer price inflation cooled to a 15-month low in December, paving the way for more policy easing. Prices shrugged off Friday’s decision by ratings agency Standard & Poor’s to downgrade nine euro zone countries, as traders speculated the rating cuts were already priced in to the market. S&P stripped France and Austria of their coveted triple-A ratings and slashed Italy, Spain, Portugal and Cyprus by two notches. Malta, Slovakia and Slovenia were downgraded by one notch, while Germany, Finland, Luxembourg, and the Netherlands kept their triple-A ratings. For today's session market is looking to take support at 415.3, a break below could see a test of 412 and where as resistance is now likely to be seen at 420.8, a move above could see prices testing 423.1.

Trading Ideas:

Copper trading range is 412-423.1.

Copper regained strength as prices continued to draw support from expectations for near-term monetary easing in China.

Sentiment on the industrial metal remained upbeat amid growing expectations China will ease monetary policy.

Goldman Sachs said Friday that it remained bullish on copper, citing greater supply risks and stronger fundamentals.