NEW YORK (TheStreet) -- Base metals opened weaker Tuesday, and uncertainty is expected as major economic data releases are expected to be a mixed bag.
Given the overall positive trend in Monday's trading session with metals touching three-month highs, profit-booking is due to follow. Therefore, there is a buying opportunity for investors at lower levels.
Economic data releases lined up for the day include personal income for June, which is estimated at 0.2% as compared to the prior month's 0.4%, and June personal spending at 0.1% as compared to 0.2% in May. Additionally, factory orders for June are foreseen at negative 0.3% as compared to the negative 1.4% in May. June pending home sales are likely to swing to a 3.7% rise compared with a negative 30% recorded in May.
Copper
Copper for delivery within three months declined 1.2% to $7,419 on the London Metal Exchange after rising to a three-month high on Monday as selling volumes increased due to profit-booking by investors. LME copper inventories decreased 425 tonnes to 413,075 tonnes Monday. Copper faces support at $7,393 and resistance at $7,466.
Southern Copper(SCCO) was optimistic of a copper demand increase despite the risk of a slowdown in the global economy. As evidenced from declining inventories across warehouses, the metal's physical consumption is increasing worldwide. Southern Copper added that although major demand derives from Asian economies, U.S. and European demand has also increased from a year earlier.
Major copper producers are trading close to resistance levels. Southern Copper, which closed at $32.39 in the previous trading session, has support at $32.09, while resistance lies at $32.55 after which it is seen crossing $32.72. Meanwhile, Freeport-McMoRan Copper & Gold(FCX) closed at $74.80 with support and resistance at $73.54 and $75.59, respectively. Teck Resources(TCK) closed at $36.92 with support at $35.84 and resistance at $37.67.
Aluminum
Aluminum for delivery within three months dipped 0.5% to $2,206 per ton on the LME. Inventories for the metal on the LME declined 4,200 tonnes to 4.38 million tonnes Monday. Aluminum finds support and resistance at $2,202 and $2,223, respectively.
Kaiser Aluminum(KALU) reported that its second quarter underlying quarterly profit more than doubled, supported by cost cuts and stronger-than-expected shipments for aerospace and high-strength products. Adjusted net income for the quarter stood at $13.5 million, or 71 cents a share, as compared with $6.5 million, or 32 cents, in the year-ago quarter. Net sales increased 22% to $282 million.
Alcoa(AA) closed trading at $11.71, with resistance at $11.85 and support at $11.45. Century Aluminum(CENX) closed at $10.91 with support and resistance at $10.75 and $11.03, respectively. Kaiser Aluminum closed at $41.09 with support at $40.46 and resistance at $41.86.
Nickel
Nickel for delivery within three months shed 1% to settle at $21,740 per ton on the LME. Nickel inventories maintained by LME were up 882 to settle at 118,380 tonnes Monday. Nickel finds support at $21,526, while resistance lies at $21,777.
Zinc
Zinc for delivery within three months slumped 2.4% to $2,071 per ton on the LME. Zinc stockpiles shed 550 tonnes on Monday to close at 619,800 tonnes. The metal finds support at $2,058 and resistance at $2,098.
Lead
Lead declined 0.5% to $2,202 per ton on the LME. At the end of Monday's trading session, lead inventories accumulated 125 tonnes to close at 183,950 tonnes. Lead finds support at $2,172 and resistance at $2,207.
