A quick look at yesterday: a tough session dominated by bearish sentiment left Southern Copper 33 cents lower, while setting a $46.81 to $48.38 session range.
United States Building Permits (Sep) is next today at 12:30 UTC.
Amid the market gloom, United States API Weekly Crude Oil Stock came out at -1.27 million, while a consensus of analysts was expecting 1.55 million. United States TIC Net Long-Term Transactions (Aug) released yesterday at 20:00 UTC with a figure of 197.9 billion, while the previous figure was 21.4 billion. Data for United States Industrial Production published yesterday at 13:15 UTC came out at 0.4%, beating projections of 0.1% and showing improvement over the preceding figure of -0.1%.
Southern Copper Corporation made an initial break below its 50 day Simple Moving Average at $47.45, a possible indication of a forthcoming negative trend. Southern Copper is currently flirting with an active Fibonacci support level around $47.51. Despite this, Southern Copper could begin to recover as it approaches significant support, now 69 cents away from $46.63. Dipping below could be an indication that further losses are ahead.
In the short term, Southern Copper is expected to maintain its recent downtrend and continue spiralling lower.
Southern Copper was not the only decliner in the materials sector; BHP went down to $64.18, losing 2.43% after it closed at $65.78 yesterday. BHP Billiton went down to $49.29, losing 1.04% after it closed at $49.81 yesterday.
On the other hand, positive performances could be seen by looking at other materials stocks as Linde was up 1.33%.
Looking ahead, ongoing depreciation may be prolonged as as things stand, upcoming United States Crude Oil Inventories data is projected to fall short of market expectations with newly published data of 1.38 million, following on from the preceding figure of 9.88 million. New data is set to be published today at 14:30 UTC.
Furthermore, United States Philadelphia Fed Manufacturing Index (Oct) will be released tomorrow at 12:30 UTC. United States Existing Home Sales (Sep) is expected tomorrow at 14:00 UTC.
Southern Copper has recovered 11.31% since descending to a significant low of $42.81 around 23 days ago.