Copper settled up 0.23% at 434.95 as optimism about demand for industrial metals from top consumer China and dovish comments from the U.S. Federal Reserve offset selling by some traders who cashed in following recent gains. The U.S. economic recovery remains incomplete, with a still-ailing job market and stagnant wages justifying loose monetary policy for the foreseeable future, Federal Reserve Chair Janet Yellen told a Senate committee. Investors are at the same time less worried about a growth slowdown in top copper consumer China, putting their faith in Chinese government promises to keep growth steady. China’s economic indicators released Tuesday were upbeat, with June’s lending and money supply rising faster than expected. Total financing in June grew 41% from May, and new RMB lending stood at RMB 1.08 trillion, with M2 also up 14.7% year-on-year.. Also a risk for copper, LME stocks have risen slightly over the past few sessions, with fears creeping in that this is the beginning of an uptrend. Copper jumped 9 percent from June lows to hit a 4-1/2 month peak of $7,212 a tonne on July 8 but has failed to build on the gains, despite generally improving economic sentiment. LME warehouses in Asia have registered a flurry of small deliveries this month, sparking a reminder of a copper surplus that is expected to feed into the market in the second half. Technically market is under short covering as market has witnessed drop in open interest by -0.21% to settled at 9692 while prices up 1 rupee, now Copper is getting support at 433.1 and below same could see a test of 431.1 level, And resistance is now likely to be seen at 436.3, a move above could see prices testing 437.5.

Trading Ideas:

Copper trading range for the day is 431.1-437.5.

Copper steadied as optimism about demand from China and dovish comments from Fed offset selling by some traders who cashed in following recent gains.

U.S. economic recovery remains incomplete, with a still-ailing job market and stagnant wages justifying loose monetary policy for the foreseeable future.

LME stocks have risen slightly over the past few sessions, with fears creeping in that this is the beginning of an uptrend.