Copper on MCX settled down -0.98% at 390.60 in the line of expectation as bounce in the dollar and concerns over whether the supply and demand backdrop justified its recent rally sparked profit-taking, but prices remained underpinned by the threat of supply disruptions. Workers at the world's largest mine in Chile went on strike, with the union saying that night workers would not be replaced. In Indonesia, Freeport-McMoRan Inc's Grasberg mine has yet to be granted a new export permit. LME Copper hit $6,007 on Feb. 1, its highest since Nov. 28, and the metal used in construction has risen by 12 percent since the U. S. election in November, partly on the back of U. S. President Donald Trump's pledge to lift spending on infrastructure. Meanwhile prices are under pressure as Copper stocks in the Shanghai-bonded zone rose above the 500,000-tonne mark for the first time in four months at the end of January, from 480,000 tonnes in the previous month–up nearly 36% year-on-year. A negative arbitrage between London Metal Exchange and Shanghai Futures Exchange prices, and long-term positioning by traders were the main reasons for the increase in copper stocks. Now tTraders are also looking ahead to Chinese trade data on Friday for signals of the strength of the world's second-biggest economy and for numbers on copper imports. Technically market is under long liquidation as market has witnessed drop in open interest by
-4.66% to settled at 13818 while prices down -3.85 rupees, now Copper is getting support at 387.8 and below same could see a test of 384.9 level, And resistance is now likely to be seen at 394.4, a move above could see prices testing 398.1.

Trading Ideas:

# Copper trading range for the day is 384.9-398.1.

# Copper dropped as dollar gained while concerns over whether the supply and demand backdrop justified its recent rally

# Workers in Chile went on strike, with the union saying that night workers would not be replaced.

# In Indonesia, Freeport-McMoRan Inc's Grasberg mine has yet to be granted a new export permit.