Copper yesterday traded with the negative node and settled -0.26% down at 429.9 hit by concerns about the health of the global economy and by a softened demand outlook after manufacturing data showed a drop in new orders in both the euro zone and China. Copper posted its sharpest one-day decline in about three weeks on slightly heavier volumes as technical selling gathered pace through key moving average support. The market looked likely to test the bottom end of a well-defined trading range this year. Bulls were also rattled by euro zone purchasing managers index surveys that revealed unexpected declines in manufacturing and services activity in March, largely due to a sharp fall in French and German factory activity. The gap between the Federal Reserve's dovish core and its hawkish wing was on display on Thursday as a top Fed official said the economy is in better shape even as Fed Chairman Ben Bernanke focused on a source of weakness. HSBC's preliminary China purchasing managers index (PMI) fell to a four-month low in March, lower than 50 for the fifth consecutive month. The new low of new orders index in four months indicated waning demand both at home and abroad. What is more worrying is that the slowdown in manufacture activities began to affect employment market. In yesterday's trading session copper has touched the low of 428 after opening at 430.5, and finally settled at 429.9. For today's session market is looking to take support at 428.3, a break below could see a test of 426.8 and where as resistance is now likely to be seen at 431.1, a move above could see prices testing 432.4.

Trading Ideas:

Copper trading range for the day is 426.8-432.4.

Copper dropped hit by concerns about the health of the global economy and by a softened demand outlook

Bulls were also rattled by euro zone purchasing managers index surveys that revealed unexpected declines in manufacturing in March

HSBC's preliminary China PMI fell to a four-month low in March, lower than 50 for the fifth consecutive month.