Copper yesterday traded with the negative node and settled -0.76% down at 340.65 fallen for a fifth day as the euro zone debt crisis and the possibility of global recession prompted worries about the outlook for industrial metals demand. The US Federal Reserve is prepared to take further steps to help a fragile economic recovery held back by a weak job market and financial stresses in Europe. Copper briefly cut losses as the euro rallied against the dollar after the remarks were made. Highlighting the increasingly cautious outlook, Goldman Sachs cut its 2012 price forecasts for copper to $9,200 a tonne from $10,790, after its economists reduced their outlook for 2012 global GDP growth. Data showed new orders for US factory goods fell in Aug for the second time in 3 months, suggesting a possible softening in the mfg sector which has carried the economic recovery. But all eyes remained on the euro zone. European FM were considering making banks take bigger losses on Greek debt and have postponed a vital aid payment to Athens until mid-Nov, setting up a moment of truth in the euro zone's sovereign debt crisis. For today's session market is looking to take support at 336.2, a break below could see a test of 331.8 and where as resistance is now likely to be seen at 346.5, a move above could see prices testing 352.4.

Trading Ideas:

Copper trading range is 331.8-352.4.

Copper fell as euro crisis and possibility of global recession prompted worries about demand

Uncertainty about Greek default stokes recession fears

The ratio of copper cancelled warrants to total stocks has jumped to its highest level since June 2009.