Copper settled up 1.48% at 417.80 rose to a three-week high as investors looked ahead to key Chinese economic data to further gauge the health of the world’s second largest economy. Copper traders looked ahead to a raft of Chinese economic data scheduled for Tuesday, including reports on industrial production and retail sales. Data released last week showed that China’s surplus widened to $18.45 billion in April from a surplus of $7.7 billion in March, compared to estimates for a surplus of $13.9 billion. Exports climbed 0.9% from a year earlier, beating expectations for a 1.7% decline and following a 6.6% drop in March. Imports rose 0.8%, compared to forecasts for a 2.3% decline and after plunging 11.3% in the previous month. Investors remained cautious after pro-Russian separatists claimed victory in a weekend referendum on self-rule in the eastern Ukrainian city of Donetsk, fuelling fears that the country is sliding closer to civil war. The vote has been condemned by Ukraine’s government and the West. Also supporting the red metal, China’s demand remained strong. The country bought 420,000 tonnes of copper in March after importing 379,000 tonnes in February. However, the metal came under notable pressure after Glencore, the eighth largest copper producer, reported a 24% increase in Q1 output due to expansion at African ad Australian operations. Technically market is under short covering as market has witnessed drop in open interest by -12.34% to settled at 14163 while prices up 6.1 rupee, now Copper is getting support at 413.1 and below same could see a test of 408.4 level, And resistance is now likely to be seen at 421.3, a move above could see prices testing 424.8.

Trading Ideas:

Copper trading range for the day is 408.4-424.8.

Copper prices rose as investors looked ahead to key Chinese economic data to further gauge the health of the world’s second largest economy.

China's smelters have cut exports of spot refined copper over the past week to sell more in the domestic market where prices have risen, easing a supply shortage.

Technically market is under short covering as market has witnessed drop in open interest by -12.34% to settled at 14163