Copper rose a percent on hope that strong Chinese demand could cut stocks, but concerns remain the central bank could act again to cool inflation pressures in the economy. There could be as much as 200,000 tonnes of copper stocks sitting in domestic bonded Chinese warehouses at the end of 2009, with some reduction in early 2010.

Copper stockpiles monitored by the LME fell 0.4 percent to 523,450 tons, the first daily drop since Nov. 2, according to the bourse’s data. Including those tracked by bourses in Shanghai and New York, they totaled 714,953 tons, close to a six-year high. Copper has touched a low of Rs 341.5 a kg after opening at Rs 341.5, and last traded at Rs344.25. For today market is looking for the support at 342.00, a break below could see a test of 339.80 and where as resistance is now likely to be seen at 345.90, a move above could see prices testing 347.60.

Trading Ideas:

Copper trading range is 338-350.

Copper rose a percent on hope that strong Chinese demand could cut stocks

Resistance for the copper is at 346.80 level and support is at 342.10 level.

Copper daily stock at Shanghai exchange came up by 3020 tonnes.

BUY COPPER FEB @ 344 SL 342.60 TGT 345.40-346.20-348.MCX