Copper ended positive on Saturday on short covering after prices fell Friday on concern that China’s bid to rein in inflation will cool demand for industrial metals. A tighter money supply in China would also mean less money would be available for speculative investment in copper and other commodities, which have been surging in recent months. Meanwhile, inventories of copper stored in LME warehouses fell 175 metric tons Friday, leaving them at 362,775. Once-a-week data released on Fridays by the Shanghai Futures Exchange showed a weekly rise of 8,572 metric tons to 115,423. For today market is looking for the support at 387.5, a break below could see a test of 385.4 and where as resistance is now likely to be seen at 390.8, a move above could see prices testing 392.1.

Trading Ideas:

Copper trading range is 385.4-392.1.

Copper ended positive on Saturday on short covering after prices fell Friday

Copper is taking resistance at 391.20 and support is seen at 387.50.

Copper weekly stocks at Shanghai exchange came up by 8572 tonnes.