Copper settled up 0.40% at 447.60 rose to a three-week high on Monday, amid speculation demand from top consumer China will increase after data pointed to an improvement in Chinese credit growth. Trade volumes were expected to remain light on Monday, with Comex floor trading remaining closed for the U.S. President’s Day holiday. All electronic trades placed will register on Tuesday, when the market resumes normal trading hours. Data released over the weekend showed that Chinese aggregate financing, the broadest measure of credit, rose to a record-high of CNY2.58 trillion in January. The report also showed that bank lending rose to a four-year high of CNY1.32 trillion last month, easing concerns over tightening liquidity levels. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Gains were limited amid concerns that the U.S. economic recovery has lost momentum since the end of last year as inclement winter weather weighed on growth. Data on Friday showed that U.S. industrial production fell 0.3% from a month earlier in January, compared to expectations for a 0.3% gain. This disappointing data came one day after the Commerce Department said that retail sales fell 0.4% in January, confounding expectations for a 0.3% increase. Technically market is under fresh buying as market has witnessed gain in open interest by 2% to settled at 10290 while prices up 1.8 rupee, now Copper is getting support at 446.2 and below same could see a test of 444.8 level, And resistance is now likely to be seen at 449.8, a move above could see prices testing 452.

Trading Ideas:

Copper trading range for the day is 444.8-452.

Copper gained as soft U.S. manufacturing data dragged down the dollar and sent short-position holders scuttling for cover.

Data showed that Chinese aggregate financing, the broadest measure of credit, rose to a record-high of CNY2.58 trillion in January.

Gains were limited amid concerns that the U.S. economic recovery has lost momentum since the end of last year as inclement winter weather weighed on growth.