Copper settled up 0.59% at 342.05 traded in the range and has been consolidating for the past two weeks. The surprise rate cut from China initially had a positive effect on metals prices, but as the dollar found major strength, these metals, including copper, fell to the lows established on October 21. The Chinese government’s meeting to draft its 5-year development plan, as well as the FOMC meeting, will help define the direction of copper prices in the short term. Prices have been under pressure in recent sessions as persistent worries about future demand from top consumer China weighed. The People's Bank of China cut its benchmark interest rate by a quarter percentage point on Friday, the latest in a series of measures aimed at stimulating economic activity and boosting growth. It was the sixth rate cut over the past 12 months, fueling concerns that economic growth is weakening more than is currently expected. The rate cut came several days after Chinese government data showed third-quarter economic growth slowed to 6.9%, the first time since the global financial crisis that the country’s gross domestic product has grown less than 7%. Market players now looked ahead to the outcome of a four-day meeting of China’s top Communist Party officials later this week, amid expectations for further economic reforms. Technically market is under short covering as market has witnessed drop in open interest by -3.85% to settled at 19135 while prices up 2 rupee, now Copper is getting support at 340.4 and below same could see a test of 338.7 level, And resistance is now likely to be seen at 343.7, a move above could see prices testing 345.3.

Trading Ideas:

Copper trading range for the day is 338.7-345.3.

Copper inched higher as weak Chinese industrial profits data reinforced views that Beijing will roll out additional support measures for the economy.

Data showed that Chinese industrial profits slipped 0.1% from a year earlier in September, compared to an 8.8% tumble in the previous month.

China accounts for nearly half of global copper demand, which is estimated this year at about 23 million tonnes.