Copper settled flat after felling Friday erasing the gains made earlier in the week as fresh worries about debt-laden Greece and the health of China's economy sent traders cashing out of the industrial metal.
The leader of the smallest party in Prime Minister Lucas Papademos' coalition government, George Karatzaferis, said he could not vote in favor of a 130-billion-euro bailout agreement Greece needs to avoid default in March.
That uncertainty prompted a wave of profit taking in copper, dragging prices down near key moving average support.
The metals market is also moving into a seasonally strong period, as the end of the northern hemisphere winter approaches and construction restarts in the spring.
Copper is used widely in construction. China's imports of copper, Copper alloy and semi-finished products in January rose 13.6% on year to 413,964 metric tons, the General Administration of Customs said.
Copper stocks held in the warehouses monitored by the LME, closely watched by investors to determine the health of Copper demand and by proxy the global economy, have dropped by 10 percent since 2011 to 2.5 year lows.
Data on Friday showed copper stocks fell a further 850 tonnes to bring inventories to 312,750 tonnes. In yesterday's trading session copper has touched the low of 423.6 after opening at 424.9, and finally settled at 424.45.
For today's session market is looking to take support at 423.7, a break below could see a test of 423 and where as resistance is now likely to be seen at 425.1, a move above could see prices testing 425.7.
Trading Ideas:
Copper trading range for the day is 423-425.6.
Copper fell as fresh worries about debt-laden Greece and health of China's economy sent traders cashing out profits
China January copper, copper product imports 413,964 tons, up 13.6% on year
Copper weekly stocks at Shanghai exchange came up by 18311 tonnes
Courtesy: Kedia Commodities
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