Copper yesterday settled up 1.2% at 420.50 extended gains from the previous session to hit a two-week high, as sentiment on the industrial metal remained upbeat amid easing concerns over China’s economic outlook. Copper futures rallied nearly 2% on Monday after data released over the weekend showed that China’s official manufacturing purchasing managers’ index rose to 50.8 in May from 50.6 in April. This offset data on Monday showing that China’s final HSBC PMI fell to 49.2 in May from a flash reading of 49.6 and down from 50.4 in April. Copper traders consider shifts in the Chinese PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector. Meanwhile, in the euro zone, data showed that May’s manufacturing purchasing managers’ index improved to 48.3 from 47.8 in April. Germany’s manufacturing PMI was revised up to 49.4 in May from a final reading of 48.1 in April and above the preliminary reading of 49.0. Europe as a region is third in global demand for the industrial metal. Expectations that the Federal Reserve will keep its loose monetary policy in place for the indefinite future also supported sentiment after data on Monday showed that activity in the U.S. manufacturing sector contracted for the first time in six months in May. Technically market is under fresh buying as market has witnessed gain in open interest by 32.85% to settled at 26367 while prices up 5 rupee, now Copper is getting support at 417 and below same could see a test of 414 level, And resistance is now likely to be seen at 422, a move above could see prices testing 424.

Copper trading range for the day is 414-424.

Copper gained as concerns eased about an early cut in U.S. monetary stimulus and as investors took account of prolonged shutdown at copper mine.

In the euro zone, data showed that May’s manufacturing purchasing managers’ index improved to 48.3 from 47.8 in April.

Investors were already holding off making big bets until Friday's U.S. non-farm payrolls report shows the employment situation

Warehouse stock for Copper at LME was at 610925mt that is  down by  -3150mt.