Copper yesterday traded with the positive node and settled 1.19% up at 424 rallied for the fourth consecutive day, trading at the highest level since mid-September after a capital injection by the Chinese central bank into money markets fuelled speculation of further easing measures by the world’s top copper consumer. Copper prices have rallied nearly 10.1% since the beginning of 2012, buoyed by expectations that demand from top consumer China will remain strong and that the global economy was recovering despite the effects of the euro zone’s debt crisis. Earlier in the day, the People's Bank of China offered CNY183 billion, or USD29 billion, of 14-day reverse repurchase agreements, easing liquidity conditions ahead of the Lunar New Year holiday. Separately, reports surfaced that China’s banking regulator was considering a plan to relax capital requirements for lenders. Chinese policy makers are under pressure to loosen monetary policy after growth in the world’s second-biggest economy moderated to the slowest pace in 10 quarters. The central bank in December cut lenders’ reserve requirements for the first time since 2008. In yesterday's trading session copper has touched the low of 419.45 after opening at 419.45, and finally settled at 424. For today's session market is looking to take support at 420.4, a break below could see a test of 416.8 and where as resistance is now likely to be seen at 426.7, a move above could see prices testing 429.3.

Trading Ideas:

Copper trading range is 416.8-429.3.

Copper rallied at the highest level since mid-September after capital injection by Chinese central bank into money markets.

Copper prices have rallied nearly 10.1% since the beginning of 2012, as demand from China will remain strong.

People's Bank of China offered reverse repurchase agreements, easing liquidity conditions ahead of the Lunar New Year holiday.