Copper yesterday traded with the negative node and settled -0.83% down at 421.55 after the release of a flurry of economic data out of the euro zone. Market sentiment firmed up slightly after data showed that the euro zone’s economy stagnated in the first three months of 2012, defying expectations for a contraction.Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%. German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011. But copper remained lower after a report showing German economic sentiment for May deteriorated significantly more-than-expected, declining for the first time in six months. Meanwhile, investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone. Markets were also jittery after Moody’s Investors Service earlier announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding. Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months. For today's session market is looking to take support at 419.7, a break below could see a test of 417.8 and where as resistance is now likely to be seen at 424.1, a move above could see prices testing 426.6.

Trading Ideas:

Copper trading range for the day is 417.8-426.6.

Copper slid after Greece said it will hold new elections and investors worried that country might exit euro zone.     

Also weighing on sentiment, ratings agency Moody's lowered its long-term debt and deposit ratings for 26 Italian banks

A slowdown in China is also weighing on investors' minds, with Beijing's weekend move to cut banks' reserves