Copper yesterday traded with the positive node and settled 0.21% up at 433.35 as appetite for riskier assets improved amid optimism US lawmakers will reach a deal to avert the looming fiscal cliff crisis before the January 1 deadline. Markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the US, approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. House of Representatives Speaker John Boehner said Wednesday that he remained hopeful Republicans could forge an agreement with the White House to avert the budget crisis. President Barack Obama later said he believed a "framework" for an agreement can be reached before Christmas. There are fears the US economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline. The optimistic comments prompted investors to shun safe haven assets, such as the US dollar and flock to riskier assets, like stocks and commodities. In yesterday's trading session copper has touched the low of 429.1 after opening at 432.6, and finally settled at 433.35. For today's session market is looking to take support at 429.9, a break below could see a test of 426.5 and where as resistance is now likely to be seen at 436, a move above could see prices testing 438.7.

Trading Ideas:

Copper trading range for the day is 426.5-438.7.

Copper gained as signs of faster growth in U.S. and China continued to mount.

Stockpiles of copper in China are up 35% since early September, and reports suggest that stockpiles held in private warehouses have swelled

Copper output in Chile, the world's largest copper producer, was up 1.4% year-on-year in October to 476,202 tons