NEW YORK ( TheStreet) - Base metals opened in the green on Monday after a rough Friday's session. However, negative data relating to home sales could drag base metal prices lower. On Friday, the S&P 500 lost 2.9%, Dow Jones dropped 2.5% and the Nasdaq dropped 3.1% due to a falling consumer confidence and weak second-quarter earnings from Bank of America ( BAC) and General Electric ( GE)Among the economic data released Friday, Michigan consumer sentiment index for July came in at 66.5, below market expectations of 74. Moreover, consumer price index for June stood at negative 0.10% vs. negative 0.20%. The only data for Monday was the U.S. NAHB Housing Market Index for the month of July, which was estimated to be at 16 vs. 17 recorded in June. The HMI fell two points from a downwardly revised number in the previous month to 14 for July. Copper Copper for delivery within three months traded almost 1% higher at $6,551 in early hours of trading on the London Metal Exchange (LME). However, on Shanghai exchange, the metal lost 2.3% to $7,662 a ton. The increase comes after the metal dropped to its two-week low, thereby trading at a discount to Shanghai prices opening up an arbitrage opportunity. Inventory levels shed 1,300 tonnes to close at 426,425 tonnes Friday. Copper faces support at $6,485 and resistance at $6,560. Major copper producers in the world are trading very close to their resistance levels. Southern Copper ( SCCO), which closed at $28.93 in the previous trading session, has support at $28.64, while resistance lies at $29.39 followed by $29.86. Meanwhile, Teck Resources ( TCK) closed at $31.64 with support and resistance levels lying at $31.11 and $32.37, respectively. Aluminum Aluminum for delivery within three months was up 0.6% to $1,990 per ton in early hours of trading on the LME. On Friday, the LME inventories dropped 6,575 tonnes to close at its 52-week low of 4.38 million tonnes. Aluminum faces support at $1,978 and resistance at $1,994. Meanwhile, according to Standard Chartered analyst Judy Zhu, any further fall in the metal's price is unlikely, as support lies at current levels. Although the market is foreseen to rebound, any gains would be capped at around $2,200, she added.
Alcoa ( AA) ended trading at $10.41, close to its resistance of $10.64, after which is technically seen to be crossing $10.86. Its support lies at $10.30. Century Aluminum ( CENX) closed at $9.03, with support and resistance at $8.87 and $9.31, respectively. Nickel Nickel for delivery within three months gained 0.8% to $19,100 per ton in the early hours of trading on LME. Nickel inventories maintained by LME declined 492 tonnes to settle at 119,070 tonnes Friday. Nickel faces support at $19,000 and resistance at $19,200. Recently, Norilsk Nickel revealed that it expects demand across metals to fall in the third quarter as per seasonal norms. According to Viktor Sprogis, Deputy CEO for sales and distribution, Europe would account for 60% of total sales volumes in 2010, while Asia and Americas would contribute 25% and 13%, respectively. Zinc Zinc for delivery within three months increased 1.5% to $1,824 per ton in early hours of trading on the LME. Zinc stockpiles added 800 tonnes to close at 617,725 tonnes. Zinc faces support at $1,795 and resistance at $1,833. Nyrstar NV, the world's largest zinc producer, revealed that it acquired two polymetallic mines in Peru for approximately $23 million. The two mines, Contonga and Pucarrajo, comprise about 4,900 hectares of mining concessions. Lead Lead gained 1.2% to $1,792 per ton in early hours of trading on the LME. At the end of Friday's trading session, stockpiles decreased 725 tonnes to 186,975 tonnes. Lead faces support at $1,775 and resistance at $1,795.