Copper yesterday settled up by 1.08% at 411.70 after strong U. S. housing and consumer condidence data lifted prospects for rising metals demand in the world's biggest economy although gains were capped by a stronger dollar and concerns over Chinese growth. Metals prices got a shot in the arm after U. S. single-family home prices rose in March by the most in seven years and consumer confidence climbed in May to the highest level in more than five years. Copper was mostly steady last week, but looks set to end the month with gains of more than 4 percent, its first monthly advance since January. Fuelling investor concern, China's factory activity shrank for the first time in seven months in May, data showed last week, reigniting worries over stuttering growth there. An official report is due on June 1. Helping to firm sentiment, however, ECB Executive Board member said on Monday the bank will stick to its expansive monetary policy for as long as necessary. In supply news, Freeport McMoRan Copper & Gold Inc is allowed to re-start most of its production at its Papua copper mine, a mining ministry official said on Tuesday, two weeks after a tunnel collapse killed 28 people. A resumption of mining operations at the giant Grasberg mine in Indonesia, could erode support for copper prices. Technically market is under short covering as market has witnessed drop in open interest by -17.65% to settled at 18233 while prices up 4.4 rupee, now Copper is getting support at 406.03 and below same could see a test of 400.30 level, And resistance is now likely to be seen at 415.80, a move above could see prices testing 420.00.

Trading Ideas:

Copper trading range for the day is 400.3-420.1.

Copper climbed after strong U. S. housing and consumer confidence data lifted prospects for rising metals demand.

Metals prices got a shot in the arm after U. S. single-family home prices rose in March by the most in seven years

A resumption of mining operations at the giant Grasberg mine in Indonesia, could erode support for copper prices.