NEW YORK ( TheStreet) -- According to a report from Fitch, base metals face a downside risk in the near term. The agency reckons that global metals demand would depend on the growth of developed economies in the next recovery phase. However, it forecasts a stable outlook for the sector.

On Friday a disappointing reading on consumer sentiment was released.

Copper

Copper for delivery within three months traded 0.2% down at $6,665 in early hours of trading on the London Metal Exchange (LME). During the week, the metal was down 1.2%. Inventory levels closed at 427,725 tonnes Thursday, down 775 tonnes. Copper is expected to trade sideways with support at $6,647 and resistance at $6,681.

Major copper producers in the world are trading very close to their resistance levels. Freeport-McMoRan Copper & Gold ( FCX), which closed at $63.17 in the previous trading session, has support at $62.87, while resistance lies at $64.01, followed by $64.84. Meanwhile, Teck Resources ( TCK) closed at $32.92, with support and resistance levels at $32.38 and $33.40, respectively.

Aluminum

Aluminum for delivery within three months traded flat at $2,015 per ton in early hours of trading at the LME. LME inventories were up by 5,825 tonnes to close at 4.38 million tonnes. Aluminum faces support at $2,009 and resistance at $2,022.

Alcoa ( AA) ended yesterday's session at $10.84, close to its resistance of $10.99, after which is technically was seen to be crossing $11.14. Its support lies at $10.65. Kaiser Aluminum ( KALU) closed at $37.60, with support and resistance at $36.90 and $38.09, respectively.

Nickel

Nickel for delivery within three months dipped 0.5% to $19,300 per ton in early hours of trading on LME. The metal declined 0.5% in the past week. Stockpiles maintained by LME declined by 234 tonnes to close at 119,562 tonnes. Nickel faces support at $19,234 and resistance at $19,433.

Zinc

Zinc for delivery within three months increased 1.4% to $1,833.3 per ton in early hours of trading on the LME. The metal has lost 5% this week. Zinc inventories maintained by LME added 900 tonnes to close at 616,925 tonnes. Zinc faces support at $1,821 and resistance at $1,841.

A recent Fitch study estimates zinc market to trade in a surplus for the next one year.

Lead

Lead edged up 1% to $1,815 per ton in early hours of trading on the LME. For the week, the metal dropped 2.6%. Stockpiles decreased 450 tonnes to 187,700 tonnes. Lead faces support at $1,804 and resistance at $1,820. According to the International Lead and Zinc Study Group's latest monthly bulletin, the global lead market was in surplus by 34,000 tonnes in the first five months of 2010.
Karvy Global Services (www.karvyglobal.com), a subsidiary of the Karvy group (www.karvy.com), provides specialized research in asset classes including stocks, mutual funds and insurance to leading Wall Street firms.

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