Copper yesterday traded with the positive node and settled 0.07% up at 445.70 and seems that sentiments are building strong as support seen after the union at the world's largest copper mine Escondida has given the deposit controlled by global miner BHP Billiton until Monday to propose a new contract agreement within the framework of early labor talks, the union said in a statement on Saturday. If the proposal is deemed satisfactory, the union will call on its members to vote on its acceptance. Otherwise, the union will consider the process of early contract negotiations terminated, and will begin preparing itself for the standard negotiation process. Copper's losses on Friday came after official data showed that consumer price inflation in China accelerated to a seven-month high of 2.5% in December, up from 2% in November and above expectations for a 2.3% increase. In the week ahead, investors will be anticipating a speech by Federal Reserve Chairman Ben Bernanke on monetary policy and the recovery from the global financial crisis on Monday, as well as Tuesday's data on US retail sales for December. In yesterday's trading session copper has touched the low of 445.2 after opening at 445.5, and finally settled at 445.7. For today's session market is looking to take support at 445.3, a break below could see a test of 444.9 and where as resistance is now likely to be seen at 446, a move above could see prices testing 446.3.

Trading Ideas:

Copper trading range for the day is 444.9-446.3.

Copper settled flat on signs of lackluster physical demand and speculation that rising Chinese inflation would limit economic stimulus there

Most users of copper in China will hold off on spot purchases, preferring to wait until factories re-open after Lunar New Year celebrations.

Copper weekly stocks at Shanghai exchange came up by 2638 tonnes